+5 Surprising Things Your Home Insurance Covers

Home insurance is a type of property insurance, although it is not widespread despite its importance. Several experts have called for some time that this insurance should be compulsory, but this isn’t easy to implement because it needs legislative amendment. Within the framework of awareness and definition of the different types of Insurance, this is the most important information about home insurance and its importance.

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What is Home Insurance?

It is a sort of property insurance that’s concerned with protecting homes from expected dangers such as fire or burglary and sometimes extending to protection from natural disasters such as “hurricanes, earthquakes, and volcanoes.”

Home insurance represents a means of protection from expected and predictable dangers, and protection from risks comes in the form of an insurance policy that includes several conditions that the insured agrees to and guarantees him the rights to protect the home.

What does homeowners insurance cover?

The home insurance policy, according to the various resources, includes protection for homes, whether buildings only, or contents only, or both together, and the coverage includes the following risks:

Fire, lightning strikes, explosions, earthquakes, storms, and floods, overflowing or exploding tanks, devices or water pipes, collision or collision resulting from vehicles or airplanes, disturbances, riots, and labor unrest.

Surprising Homeowners Insurance Coverages

Homeowners insurance (“home” can be a condo, home, or apartment) broadly covers two things: your belongings and your liability that arises out of your daily life.

Homeowners insurance covers your stuff (property) from specific ‘perils’ or things that might cause your stuff to be ruined or lost. So a peril is a fire or a theft. When your stuff is damaged or lost, you suffer a financial loss. Property insurance is designed to compensate you for that financial loss.

Homeowners’ insurance covers the liability that you are exposed to. For example, if You invite me over for dinner and I get food poisoning. Or I trip on your throw rug and break my arm. When I get hurt, I potentially have a legal claim against you. Insurance protects you from suits brought by me for my broken arm.

Certain property items that homeowners don’t cover typically have their insurance, like a car or boat. Some perils are not covered, depending upon what type of policy you purchase, but in no instance would flood be covered (different policy) or other things like loss due to war.

There are liability exposures that aren’t covered, generally where there should be another policy that provides cover. So your home policy won’t cover you should you hit me with your car.

It is essential to purchasing homeowner insurance for everyone to protect their homes and personal properties and cover up unintentional damages. Purchasing homeowners insurance needs a great deal of consideration. Although it may sound unnecessary to few folks, it’s crucial to check a few facts before choosing homeowners insurance to protect your home and yourself from the biggest unwanted surprises of your life.

The question of home insurance importance is interesting, but it would take a large book to answer; here’s why. Most people read an insurance policy (usually too late) the wrong way. The right way is to read the exclusions or any restricting wording first.

Without exclusions or restrictions, the contract would cover any liability that may occur from your actions or arising from the property. It would also cover any damage to your house and house holdings regardless of how it occurred.

An insurance policy is a contract. A contract between two sides. You and the Insurance company to cover ALL your losses that arise out of homeownership, including any damage to your home, UNLESS EXCLUDED OR RESTRICTED UNDER THE CONTRACT.

There is much case law that will apply to policy contract wording. The reason for such case law is usually an interpretation of the contract wording which can swing a usually assumed excluded claim into a covered claim. So, to answer your question, there have been many examples of very unusual claims being paid by homeowners insurance. Conversely, there have been many presumably covered claims that were excluded and not paid.

Just one example of millions would be the usual limitation of limit available for, say, tools. The policy usually limits tool coverage to a small amount, usually around $2500 to $5000. So, let’s say a fire destroyed your garage and with it damaged your drill, your lathe, and your miller, all worth 10,000. Only the limit of, say, 5000 applies.

Well, actually, no. Many “Mr. Fix it all’s” were very happy to learn that the exclusion applies to the tools used by those machines but not the machine itself. Only the drill bits, the lathe bits, and the milling bits were not covered. The machines were all covered. So, to end this, always READ your policy before a loss happens, not after. Ask questions to your insurance providers and ask for understandable answers in laymen’s terms.

Termites, damage from slow water leaks, earthquakes, water and sewer backup, underground water and utility lines, removal of dead trees, removal of fallen trees that do not strike covered property, your tree is falling onto your neighbor’s house, defective workmanship, collapse, equipment breakdown.

Food spoilage., intentional damage, law and ordinance upgrades, and flood. The list goes on. Before all the insurance agents out there jump all over me, yes, you can endorse or buy separate policies for some of the aforementioned.

There are many other surprising things covered by home insurance:

  • Standard home insurance policies cover damage caused by falling objects.
  • Your homeowner’s insurance might cover-Random accidents that happen outside your home if no vehicles are involved.
  • -f identity theft happens to you, your home insurance policy might help restore your peace of mind faster.
  • Riots/terrorist attacks (like an explosion or fire) damages your property; your home insurance may cover it.