Having your own home is probably one of the biggest investments you will ever make in your life. For this reason, in most of the cases a cautious and responsible homeowner tends to insure their house if anything goes wrong. And by the word ‘anything’ we mean in a literal sense. Life is never predictable; it is far better to take proper precautions rather than to gulp down your losses.
But, in the recent few years, home insurance policies have started to include exceptions and exclusions under which, the insurance won’t be valid anymore. For the insurance company, such terms and conditions might be fruitful but not for the general public. That is why, through this article, we want to create awareness on the conditions which will not be covered by your home insurance.
Down below are some of the examples of such exceptions
1) Tectonic movements
‘An act of God’ so as they say, but jokes apart, the majority of the Home Insurance Policies exclude the damages that have been done due to the movement of the ground. Such instances include natural calamities like earthquake and even mudflow. While your basic home insurance might not cover such incidents, you can opt for earthquake and sinkhole coverage as an add-on to your current policy.
2) Intentional damages
There’s no rocket science to understand that home insurance policies never cover any damage that has been done intentionally. So, it is the perfect time for you to take care of your house, so that the damage doesn’t deem to be intentional. And, by any chance, of your mind is a devil’s workshop, the insurance is not going to pay for the damage you have intentionally created.
3) Water related damage
Water related damage is yet another exception that is not covered in most of the home insurance policies. Whether it is a flood or a problem with your sewer system, your house won’t be insured. On the contrary, you can always opt for a flood insurance policy if your home resides in a flood-prone area.
4) Ordinance
This might get tricky at times, but the best way to understand ordinance is that, if your home fails to follow the standard building regulations, the chances are your home insurance will void. For such a case, you need to add the law coverage endorsement with your policy.
5) Mould damage
We all know that, mould is something that gradually takes over and doesn’t occur overnight. That is precisely why home insurance policies deem mould as something which could be prevented. Neither less to say, this gives you another reason to take care of the house along with your family’s health.
6) Luxury goods
There is probably no basic home insurance policy that is going to cover your jewellery and other luxury items. So, if you think that single home insurance is going to cover everything that resides within your house, you are terribly wrong. This even includes vintage items and costly musical instruments. A little word of advice, if you are in possession of such items, it is far better to seek separate insurance for them.
7) Identity theft
Identity theft is something that is becoming more common within the home insurance but not certainly being the standard for all. In order to raise your concern, you can always give your insurance agent a call to check if you have the coverage and the option towards adding it.
8) Business claims
Last but not least, don’t ever confuse your home insurance with business-related claims. For the majority of times, if you are doing business within the house, the chances are that your business is not likely to be covered within the same insurance. So, no matter how small your business might seem, there’s always a policy out there for you.
Final thoughts on it
Understand this- all the exceptions, as mentioned above, vary from one home insurance to another. Before applying for home insurance, make sure to examine the coverages your home insurance policy will provide. You can also apply for supplemental coverage. Above all, the best thing to do is give a call to your insurance agent and ask them directly about all of your concerns.
