6 Unexpected Exclusions from Homeowners Insurance

6 Unexpected Exclusions from Homeowners Insurance

6 Unexpected Exclusions from Homeowners Insurance.

6 Unexpected Exclusions from Homeowners Insurance.

According to a report by NBC News, a squirrel recently scuffed up the flooring chewed the baseboards, window, and door frames, and destroyed a sofa after allegedly seemingly falling down a chimney into a residence in Atlanta. The animal also reportedly damaged a couch.

It is believed that the rampage caused by the bushy-tailed rodent cost at least fifteen thousand dollars worth of damage.

According to NBC, when the homeowners made a claim, the insurance company denied it on the grounds that the policy did not cover damage caused by squirrels.

It’s likely not the first time that homeowners have discovered, much to their dismay, that there are certain things that may happen to their houses that aren’t covered by their homeowner’s insurance policy.

According to Janet Ruiz, who provides her explanation through email, “Fire is the fundamental coverage offered by an insurance policy.”

She holds the position of director for strategic communication at the Insurance Information Institute, a trade association. “Other typical dangers include losses due to wind, flood, theft, and liability. In most cases, separate insurance is necessary for both earthquake and flood coverage.

You may be able to add earthquake coverage as an endorsement in some states. It is essential to have a candid conversation about the dangers you face and to get the appropriate insurance.”

Here is a list of eight more dangers, in addition to the harm caused by an invading squirrel, for which it is quite likely that you do not have insurance coverage.

  1. Floods
    According to a guide on what natural catastrophes are covered by insurance written by the institute, damage caused by floods is not covered by ordinary homeowners’ insurance policies. Because of this, it is wise to get flood insurance, which may be done so via the National Flood Insurance Program of the United States government or through a private insurance company.
  2. Tremors of the Earth (Earthquake)
    When an earthquake with a magnitude of 5.8 struck in Virginia in 2011, it jolted the east coast of the United States and caused up to $300 million in damages, along with various degrees of damage to 600 homes. It’s possible that a good number of the owners were dismayed to learn that their homeowner’s insurance wouldn’t cover the expenses associated with restoring the damage done to their homes. According to the institute, a regular homeowners insurance would often cover damage caused by fires that are triggered by earthquakes. However, coverage for earthquakes, which may cause damage to foundations and collapse walls, needs a special policy.
  3. Sewer Backups
    According to the institute, homes insurance plans and flood coverage do not provide coverage for sewage backups, despite the fact that they may be quite a nasty occurrence. You will, however, be required to get extra sewer coverage.
  4. Maintenance Damage
    Maintenance harm. According to the institute, homeowner’s insurance plans do not cover damage to your house that is caused by your disregard of fundamental home upkeep. In the same vein, if your home becomes moldy or is plagued with termites or any other kinds of pests, your insurance won’t pay out. (Here is an instruction manual from the institute on how to keep mold out of your house.)
  5. Swimming Pools and Trampolines for the Backyard
    They are entertaining, no doubt. However, the National Association of Insurance Commissioners believes that trampolines and swimming pools are both sufficiently hazardous that certain insurance providers may refuse to insure your property if it contains either of these features, or they may exclude liability for any injuries that may have been caused by them. If you don’t tell them when you purchase a trampoline or a pool, or if you don’t follow the safety rules that come with the insurance, they may even cancel your coverage.
  6. Dog Attacks
    According to the institute, in the event that a guest to your home gets bitten by your family pet, you are normally protected for any legal obligation up to the liability maximum of your policy, which is often $100,000. The typical compensation for a dog bite claim is roughly $39,000, so you should be OK. However, if you own a breed of dog that has a history of being hostile toward people or other animals, this presents a far more difficult challenge, since some insurance providers may refuse to cover you at all.
  7. Jewelry of an Extremely High Price
    According to the page on jewelry and other valuables published by the institute, most homeowner’s insurance plans include a limit on the amount of bling that they will cover. This cap is often approximately $1,500. If you have a number of expensive rings or necklaces, you may want to look into purchasing a floater policy. This kind of insurance can compensate you for any type of loss, such as if your ring was lost after being flushed down the toilet. In order to do so, you will need to have an expert assess the objects.
  8. Keeping your belongings in the storage space of another person
    According to Amy Bach, the executive director of United Policyholders, a consumer advocacy group based in California, if a friend or neighbor of yours allows you to store some of your belongings in his or her basement, you run the risk of having those items destroyed in the event of a natural disaster. Your damages will not be covered by that person’s insurance since you do not own the property where the incident occurred. Bach advises that you “would need to attempt to collect money from your buddy” in this scenario.