Surveys are showing that many people are not exactly sure what their homeowner insurance policy covers… and does not cover. Since Homeowners Insurance is mandatory if you owe money on the property and well advised to have even if you don’t, it only makes sense to get educated on the ins and outs of your policy.  Most people pay the premium every year and never read their policy.  Remember, the devil is in the details.  Read your policy and pay close attention to the exclusions.  If you have questions, call your agent; he’s there to help you.

Here are a few things to be aware of that Homeowners Insurance typically does NOT cover:

  • Flood or Earthquake Insurance. You must purchase separate coverage.
  • Cars, motorcycles and boats are not covered.
  • Damages due to a break in the water line on your property.
  • Damages due to a break in the sewer line on your property.
  • Mold damage.
  • Termites or other infestation damage.
  • Injured or stolen pets.

Many people surveyed believed these things were covered, and they are not. Experts also recommend that you add coverage if you acquire valuable possessions, or make any major home improvements. If you own a trampoline or pool, you may need to increase your liability coverage. If you have valuable jewelry you may also want to add an additional floater to cover any special items that will not be covered by your basic homeowners policy.

For more information on the types of coverage available and how to save money on your homeowner’s policy, click here.