Understanding Homeowner’s Insurance Coverage Gaps

Posted By : Aubrey mead , on Jan, 2016


When a person buys a Homeowner’s Insurance policy, they should carefully read it to determine which perils are covered. Many customers believe that home insurance policies cover risks such as earthquakes, flooding, and mold damage, but that isn’t true in many cases. Customers should carefully review new policies to understand and prepare for exclusions.

Are Earthquakes Covered?

In almost every insurance policy, earthquake coverage isn’t included–especially in states with high numbers of quakes. In such areas, earthquake insurance is sold by speciality insurers. Premiums on these policies are typically much higher than on standard homeowner’s policies, as are deductibles, but protection is important. After all, an earthquake can happen anywhere, at any time.

Other Damages to the Home

Most homeowner’s insurance policies do not cover damage due to mold or flooding. Even in cases where a home is damaged by a storm, and subsequently by a flood, the damage from that flood is not covered. This can leave a gap in coverage, and homeowners should ensure that they have both flood and home insurance if they live in a flood plain. If a person lives in a low-lying area, most insurance companies will require them to buy supplemental flood insurance. Those who are not sure should consult a local insurance agent to determine what types of coverage are needed in a particular area.

Mold Damage

Mold is a severe problem in some parts of the US, and most home insurance policies do not cover damage related to mold. Coverage is lacking because mold damage claim numbers are rising, and many insurers have decided to stop covering it in traditional homeowner’s policies. If a customer lives in an area that’s susceptible to mildew and mold growth, they should consider buying the appropriate supplemental insurance coverage.

Catastrophes can happen at any time, leaving struggling to rebuild. Homeowner’s Insurance policies are there to help customers defray the costs of reconstruction, but they do carry some exclusions. Checking coverage on a homeowner’s policy from visit us website can prepare the homeowner for a future claim, and it can point out any insurance gaps. By closing those gaps, customers can protect their home and their future.

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