Was your home insurance purchased when you took out a mortgage loan? Then probably it is a standard home insurance. This means your policy covers only the basic risks to your home. It is time then to take a look at your policy and check if it covers all risks prevalent in your state.
There are about 14 types of risks that a standard homeowners insurance policy covers. They are the following:
Fire
Lightning
Theft
Wind
Explosion
Vandalism
Hail
Aircraft accident
Smoke
Volcanic eruption
Riots
Vehicular accident
Personal injury
Liability for Other Persons
Ordinarily also, the standard policy has the following exclusions:
Earthquakes
Nuclear Accident
Windstorm
War
Floods
Condemnation
Power failure
Intentional loss
Water damage
Neglect
If you check further, you will also see the following standard home owners insurance coverages:
- The house and attached or unattached but related structures
- Personal possessions
- Medical liability for other persons’ injuries or property damage
- Living expenses during repairs
- Financial loss due to liability lawsuits
Now that you have checked what is covered and not covered by your policy, do your research and see what risks are prevalent in your state. Do you live in California? Then you must have an earthquake coverage. Do you live in Florida? Then you must have a hurricane coverage. If you live in a flood-prone area, you must acquire a flood insurance.
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