5 Things Your Standard Home Insurance Policy Probably Doesn't Cover

5 Things Your Standard Home Insurance Policy Probably Doesn't Cover

What does your homeowner policy cover?


Most homeowners agree that they'll need insurance coverage to make sure their real estate investment is protected. But if you fail to do your research and select the right policy, you may find that your insurance needs aren't being met in the most dire of situations. The most basic homeowners insurance policy you'll obtain from your insurance company can certainly help in many cases, granting you peace of mind if you're the victim of fire, theft, explosion, and more. However, there are many situations that these more basic policies won't address. Here are five events that will likely require additional insurance coverage from your insurance agency.


 • Flooding


Many hurricane survivors will be shocked to learn that their losses are not covered under most basic home insurance policies purchased from private insurance companies. That means that if you have sustained damage to your home due to flooding, you will often be stuck with all of the costs associated with lost possessions or property. If you want to be covered in case of flooding, you'll have to purchase a separate policy either through FEMA or through a private insurer who offers this kind of policy. Keep in mind that while 98% of basements in the U.S. sustain some kind of water damage, some kinds of water and/or mold damage aren't covered under standard policies, either.


 • Earthquakes


While many U.S. residents may never have to worry about whether they're covered for earthquakes, it should be a concern for those who live along fault lines. It's also possible for the effects of substantial earthquakes to be felt in areas far away from the fault. Depending on where you live, it's possible that your property could sustain earth-shattering damage. If this is of particular concern for you, you should talk to your insurer about purchasing an additional policy for earthquakes.


 • Total Rebuild


Homeowners insurance policies will cover many damages and losses, but only up to a point. Many policies will have a cap on the coverage they'll grant, especially if your coverage is only for actual cash value. So, if you lose your entire home in a fire, your insurer will most likely not cover the total cost to rebuild your home, unless your policy is set up on a replacement cost value. Some policies do contain what's known as a property insurance valuation or guaranteed replacement cost option. This component guarantees that the policy will pay out the full replacement cost of the home even if that amount exceed the cap. The catch here is that usually, the insurer sets the replacement costs and will increase it as needed.


 • Termite Infestation


A termite infestation is every homeowner's worst nightmare. Not only do these creatures often go undetected (and multiply like crazy), but the damage they do will not be covered by your insurance policy. Some pest control companies offer what they refer to as termite insurance, but it's really not as comprehensive as a regular insurance coverage. And while there are some policies in existence that cover damage from wood-eating insects, that's a very rare find. Ultimately, proactive prevention is the best way to avoid these costs.


 • Sewer Backups


Many of us rely on our sewer systems, but many older sewer lines and sump pumps are particularly prone to problems. An abundance of rainwater or sewage can quickly overwhelm these systems and result in devastating and disgusting backups. These backups can do serious damage to your home and possessions. If you live in a neighborhood with older sewer lines, it might not be a bad idea to invest in water backup coverage. It's a relatively inexpensive add-on that could really come in handy if things go wrong.


With all of the home insurance coverage options out there, it can be tough to know if you've chosen the right one or if it will even cover the worst case scenario. To find out more about which policy will work best for your needs (and what you might want to consider adding on), get in touch with us at Best Insurance today.