Residential / Personal Insurance

Yes, that’s right. Most homeowners insurance policies don’t cover flood damage. Flood insurance protects you from severe types of water damage, such as heavy rain, and melting snow.

Homeowners insurance is meant to cover major losses that were caused by certain perils only, not from wear-and-tear or negligence. For instance, if you have a standard home insurance policy and your home is flooded, you will not be covered for damages because flood insurance is a separate policy. So is earthquake insurance. A standard home insurance policy protects you against perils that include fire, theft, smoke, windstorms, lightning strikes, hail, explosions, vandalism and theft.

A standard insurance policy covers the physical structure of your home as well as other structures on your property (sheds, garages) and personal property. The most expensive part of a home policy is dwelling coverage. Dwelling coverage is also the amount that goes up every year. The dwelling is the main structure of a home, not a detached garage or shed. However, coverage often applies for both in the event of a storm that damages multiple structures on the property, including fences, decks and built-in appliances like furnaces and water heaters. Coverage is not always included for all the aforementioned items. Make sure to read the details of your particular coverage, including the fine print on inclusions and exclusions to be sure what’s covered and what’s not before catastrophe strikes.

Home insurance is required by most lenders. If you have a mortgage, you’re almost always required to carry homeowners insurance. You may be paying for home insurance and are completely unaware of it because it’s lumped in with your mortgage payments. It’s important to make sure you’re never over-paying for your coverage. If your lender set you up with a policy, for instance, chances are they were not shopping to compare insurance quotes.

Home insurance is not a product that pays for repairs and maintenance issues. If you have expensive equipment or appliances, you can buy a home warranty, which may help pay for repairs and breakdowns of systems, like your water system. Homeowners insurance is meant to cover major losses that were caused by certain perils, rather than wear-and-tear or negligence. For instance, if your air conditioner breaks down in the middle of summer, your standard homeowners policy will not come into play. A standard home insurance policy protects you against perils that include fire, theft, smoke, windstorms, lightning strikes, hail, explosions, vandalism and theft.

Insurance and mold have a complicated relationship. In some cases, homeowners insurance will cover mold and in others it will not. If the mold is a result of a sudden accident, not the result of negligence, it may be covered.

It depends on whether the roof was neglected or damaged by a peril covered by your policy. Also, don’t assume that just because a storm came and left damage to your roof that your insurance company will replace the entire roof. While it may look like a mess to you, an adjuster may decide that you’re fine with just having some of the damaged shingles replaced. If you still decide to redo the whole roof, you may be footing most of the bill. You will also still have to pay the full deductible on your policy before the repairs to your roof are partially covered. Do the math in its entirety before assuming that filing a claim is worth it.

You need to buy as much homeowners insurance as it would take to rebuild your home. Most policies have a minimum of $100,000 in liability coverage. But you should buy at least $300,000—and $500,000, depending on what it would cost to rebuild your home. 

Infestations, like termites, are not often covered. If the termites caused a fire (by chewing wires), however, you may be covered. 

Yes, homeowners insurance covers theft. There is a contents portion of your homeowners insurance policy, which takes your possessions into account. Ideally, you have a checklist of your valuables prior to a theft. It makes it easier to get your claim paid with a homeowners insurance inventory.

An adjuster will inspect the damage and offer you a certain sum of money for repairs, based on coverages in your homeowners insurance policy. The first check you get from your insurance company is often an advance against the total settlement amount, not the final or entire payment.

Yes, a standard policy gives you both. Make sure your limits are sufficient. Consider an umbrella policy if you want to be extra secure.