When you buy a home, you need to ensure your real estate asset is protected by homeowners insurance. Without the basic coverage, you might have to pay twice out of your pocket for the same house, if it ever gets destroyed by a disaster. Even though home insurance provides broad coverage for property damage and liabilities, here are nine items that are not covered by this policy in Lancaster, CA.
- Home Business Equipment
Homeowners’ insurance provides personal coverage and is different from business insurance. While you can claim up to a certain value for your personal computer, if you use the machine for business activity, you’ll need a business insurance policy to cover it against potential harm.
- Flood Damage
Water damage, such as a bursting pipe, may be covered in a standard plan. However, most flood damage requires special flood coverage. If you live in a flood zone, you will pay much higher flood insurance than a place with minimal flooding history.
Even though termites cause damage worth billions of dollars each year, a standard homeowners insurance plan doesn’t cover such loss. Insurers view insect and rodent invasions as maintenance issues that can be prevented if you take proactive steps.
- Sewage Overflow
Heavy storms can cause sewage to back up in basements. Unfortunately, sewage problems are typically not covered in a standard homeowners plan. Ask your insurer about add-on coverage for this type of disaster. In some cases, it may be covered by flood insurance.
- Remodeling Errors
Home renovation or maintenance errors are not covered in a standard plan. So if you decide on remodeling, make sure your contractor offers guaranteed service or carries liability insurance that covers installation errors. Ask for a digital copy of the contractor’s insurance certificate. An additional option, is to take out a builder’s risk policy to ensure that any damage to the property or materials during construction is covered.
- Missing Paper Cash
If you keep your cash lying around the house or in drawers, there’s not much you can do to recover all of it if stolen during a burglary. A standard policy may provide minimal coverage, such as up to $200, depending on the insurer. However, if you want to insure a substantial amount of paper bills, you will need separate coverage for this.
- High-risk Recreational Investments
Insurance companies reward homeowners who minimize risks. Adding a swimming pool adds risks, such as potential drowning or spreading a health hazard if the water is not regularly cleaned. So pools, trampolines, and other risky recreational features usually require extra insurance coverage.
- Intentional Damage
No homeowners insurance plan covers intentional damage to your own property. In fact, people who attempt such a stunt can be charged with fraud, and the insurance industry will tag the person in its industry-wide database.
- Earthquakes, Tornadoes, and HurricanesA homeowners insurance plan covers multiple disasters but usually not the most extreme catastrophes. That’s why if you buy real estate in a region prone to seismic activity, tornadoes, or hurricanes, you will need special insurance, such as earthquake coverage. The more predictable a disaster is, the less likely it will be covered in a standard plan and will require an extra rider that states the specific peril.
Securing the right homeowners’ insurance coverage is a wise strategy to ensure your home structure and your belongings inside are financially protected. Contact us at John E. Peakes Insurance Agency to learn more about how the right homeowners insurance in Lancaster, CA, can help you live more comfortably.