What Does A Typical Home Insurance Policy Cover And Exclude?
Buying a homeowner's insurance policy is something you must do if you want to buy a house or if you already own one. Your home insurance policy protects you, your house, and your things, but a typical policy does not cover everything. He is an explanation of what a typical home insurance policy generally covers, as well as what it might exclude.
The Perils It Covers
While every policy is slightly different, a typical policy covers specific perils and excludes others. You can ask when you buy the plan what it covers, but in most cases, you can expect it to cover the following things:
- Wind
- Hail
- Fire
- Tornados
- Theft
- Vandalism
- Lawsuits
These are the typical things your policy will cover, but there might be others. You can talk to your agent to learn more about what it covers and excludes.
The Things It Covers
The next thing to understand is what the policy covers in terms of your possessions. Your house is the structure that the plan covers, and it might also cover any sheds or buildings you have on your property. If a covered peril damages these structures, you should receive compensation. Secondly, the policy covers your personal possessions up to a specific dollar amount. It might not cover every possession you have, though, especially the highly valuable ones.
The Things It Might Not Cover
The next thing to understand is what a general policy does not cover. First, it will not cover excluded perils. The most common excluded peril is flooding. If a flood occurs, you can receive compensation for the damages only if you have flood insurance. Your policy probably excludes damages from earthquakes, too.
Next, it will not cover the damages that occur from normal wear and tear. For example, if your furnace breaks and you need a new one, you cannot file a claim for this problem. Finally, your policy probably does not cover water damage if you could have prevented it. For example, if you fail to maintain your plumbing system or gutters, and you end up with water damage, you probably will not receive compensation for the costs to repair the water damage.
As you can see, your policy will cover most things, but it might not cover everything. You can always add extra coverage if you need it. To get a free quote for home insurance, contact an insurance company today to speak to an agent.
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