Keeping home insurance costs down is one way to tighten your budget during tough times, but be aware of your coverage needs. Each homeowner has their own unique needs and risks that affect insurance costs. Some homeowners need higher coverage limits, especially if they have a large family or pets.
Here are 10 items that are excluded from typical homeowners insurance in Colleyville, TX.
Earthquakes are usually not covered in standard homeowners plans, even in places with regular seismic activity. You need to invest in an add-on element to your policy that covers earthquakes if you live near a fault line. The reason insurers don’t include this coverage in standard plans is because earthquake potential is a high risk to insurers, especially in places where earthquakes occur periodically.
Damage caused by water
Flooding and sewer system problems are also not covered in standard policies. Like everything else on this list, water damage is available as add-on coverage. Your standard policy might cover certain water damage, such as a pipe leak if it was not preventable. The key is to talk with an insurance professional to discuss the various options for protection against water overflow.
Deliberate or preventable loss
It probably goes without saying that intentional damage is not covered by insurers, who are not there just to hand out cash when people need it. Insurers take a certain amount of risk for every policyholder, which is why they pick and choose who they insure. Individuals who participate in exploiting insurance coverage could face serious legal problems such as insurance fraud. Other preventable damage may not be covered as well.
Out of date with building codes
Keeping up to date on local ordinances and building codes will protect you from being penalized. Although your standard homeowners’ insurance plan will not provide coverage for work done to comply with local codes, you can purchase an add-on to access such coverage. Many homes built before the 1970s used materials that are today considered harmful to the environment and lack weather-resistant properties.
Mold and mildew
Insurers usually do not cover any damage that can be prevented, such as mold as mildew. Mold and mildew can cause health problems if they are not eliminated. These appear in homes due to extended periods of moisture, such as water buildup on roofs during the rainy season. The issue is best addressed in its early stages. Advanced mold buildup might require replacing materials, which can be expensive work.
While most of your personal possessions are covered by a standard homeowners plan, there are certain exceptions, such as unique jewelry that’s hard to price. High-priced collector’s items might fit into this category as well. Anything with unclear value may require extended coverage. Owning a classic car might also require extra insurance, especially if it is not in good condition. Insurers typically pay damage costs based on replacement prices, which is sometimes hard to measure for one-of-a-kind items.
Pools and trampolines
Some insurers will not cover pools or trampolines simply because they invite the possibilities of injuries that require medical treatment. Pools particularly present risks for families with children. Even though these accidents are limited, considering the millions of homes with pools, the risks still involve potentially high medical payouts. A trampoline may seem harmless to most adults, but young kids can suffer severe injuries from falling off the device. So if you really want a pool or trampoline, be prepared to pay for extra coverage.
Not all dogs are friendly to humans, as some can be deadly due to their aggressive nature. That’s why many cities now have ordinances for dogs to be on leashes in public. Owning a certain dog like a pitbull can get a homeowner denied coverage for a standard policy. Even though you don’t hear much about dog bites in the news, the most severe cases can cause over $30,000 in medical bills. You can still own an aggressive dog, but you’ll have to pay for extra coverage. Some people have aggressive dogs as their bodyguards, but they can still end up getting sued.
Libel or slander
Defamation of character is the type of lawsuit that no one usually expects since people are constantly reminded about the First Amendment, which allows free speech. Some people become offended when their identities are used for public comments, especially when they are important public figures. Telling a lie or exaggeration about a person that damages their reputation can lead to a huge lawsuit. The liability section of a standard plan does cover harm to others, but this does not include defamation.
Identity theft has been rising over the past decade due to an increased number of online breaches. Even though the standard homeowners’ plan covers other types of theft, such as when a bicycle gets stolen, it doesn’t always cover identity theft.
The point is never to assume your standard homeowners’ insurance plan covers everything you can imagine. It is crucial to review your policy with an insurance expert to make sure you’re getting complete coverage for your belongings. One way to ensure all your valuable items are protected is to take inventory and provide a list to your insurer.
Use this information to gain a deeper understanding of homeowners insurance in Colleyville, TX. It is good to know what your plan does and does not cover before you commit to it. Contact us at Schwab Agency for answers to your questions about homeowners insurance policies. Our agents are ready to help!