Most homeowners policies do not cover flood, so homeowners would want to get a separate policy for protection. Many homeowners, however, mistakenly believe that their policy covers flood damage. That leaves their finances unprotected when a flood happens. If you believe your home may reside in an area that could flood, you should decide if a flood protection is right for you.
While we may think that an earthquake is only an issue to those who reside along the fault line, it can still strike in areas that are least expecting it. But just like flooding, earthquakes are not covered by most insurance policies. Ask your agent about this and discuss your options.
While insurance policies may cover damages due to burst pipes, they usually don’t if it is caused mainly by negligence. Negligent causations include leaving the heater on while on a winter vacation or forgetting to drain pipes.
Concurrent causation happens when two events happen at once, and insurance does not cover one of those events (e.g. flooding). Because of anti-concurrent causation, your policy may not cover the damage from either event. Thus, when flood and wind damage happen together, homeowners could end up shelling out money.
Post-Traumatic Emotional Support
Those who experience traumatic events, like floods or fires, which destroyed their homes, often finds themselves needing financial help and emotional support. Some may even have lost their loved ones in the event, adding to their grief. Insurers usually don’t cover this type of service.
Bear in mind that most home insurance policies have limits. That means they may not cover the total cost of reconstructing your home after a covered event. When getting a policy, make sure you and your agent do an analysis to determine what it would cost to rebuild your home as it is. This number is worth revisiting annually, as inflation and cost of materials and labor can affect your rebuild cost estimate.
Required Upgrades to get your home up to Code
If your home is destroyed and needs to be rebuilt, your city or neighborhood may require that your home is rebuilt to newer code requirements. If you live in a city or association with strict coding and bylaws, consider purchasing extra coverage to rebuild your home to the new codes. If you don’t have this optional coverage, you may be stuck covering the upgrades out of pocket.
The bottom line is that you should really understand your homeowners insurance policy to avoid any surprises in the future. Make sure that you read the fine print so you can get additional protection for your finances.
Western Pacific Insurance is an independent agency that specializes in helping you find the right home insurance coverage that is the best fit for you. You may talk to one of our agents to discuss your options and get free quotes. Call us at (702) 932-4105 or visit our office today.