HOME INSURANCE POLICIES
This section explains what's covered and what's not in a standard
home insurance policy (for homeowners, renters and condo owners).
But, keep in mind that your specific exclusions and coverage limits
will depend on your policy. So, before you buy a policy, find out
exactly what's covered and what's not.
You should also find out whether your policy is "all perils" or
not.
If your policy is not all perils, which is the case for most
renter and condo policies, you're only covered against the
disasters specifically described in your policy (such as fire but
not construction damages).
If your policy is all perils, you're covered against all
disasters except those that are specifically listed as not being
covered (they are "exclusions"). Exclusions are usually for floods,
earthquakes, nuclear accidents and war.
All perils policies are better because they cover more disasters
but they are also more expensive.
Depending on your coverage you may want to buy additional insurance
for very expensive things you own, like jewelry, a computer or
stereo equipment.
What's Usually Covered
Damages caused by these things are usually covered in standard home
insurance policies:
- Fire and lightning
- Theft
- Vandalism (as long as the house has not been vacant for more than
30 days)
- Windstorm or hail
- Smoke
- Explosion
- Aircraft or vehicle crashing into home or property
- Weight of snow or ice
- Electrical surge
- Dog Bites
- Freezing, burning, sudden tearing apart or overflow from a
plumbing, heating, air conditioner, sprinkler system or other
appliance
- Volcano
- Falling objects
What's Not Usually Covered
Damages caused by these things are usually not covered in standard
home insurance policies:
- Flood
- Earthquakes
- Nuclear explosion
- War
- Mold
- Maintenance repairs (like repairing your roof because it's old)
- Damage from rodents and insects
- Home business equipment (you need a separate policy to cover a home
business)
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