All Risk Home Insurance: Key Exclusions
Most homeowners have a so-called "all-risk" insurance policy. This type of coverage insures your property against any risk except for those specific exceptions, or uninsured perils, named in the policy itself. It's crucially important for homeowners to know what risks are typically not covered by the average all-risk policy. Here's a look at some of the main exclusions in these common home insurance policies.
Flood coverage is separate from an all-risk policy. If you live in an area that is prone to flooding, then you will need to purchase coverage specifically for this purpose. One type of flooding that homeowners need to keep in mind is sewer backup. If a sewer line backup discharges a flood of wastewater in your home, you might assume that your insurance policy covers this possibility, but usually it does not. You need to contact your agent and have the coverage written into your policy.
A second key exclusion involves earth movement. This includes both earthquakes and landslides. Just as with flood insurance, if you live in a region that has earthquakes or landslides, it's essential to purchase a separate home insurance policy to protect you from these hazards or have the coverage added to your current policy as an endorsement. In some cases, you might be covered by damage from earth movement, as long a covered peril is the immediate cause. For instance, if an earthquake causes a fire in your house, the damage from the fire is usually covered.
Structural damage to your house due to insect activity is generally not covered by an all-risk homeowner's policy. This is especially relevant if you live in a humid climate, where termite populations often thrive. In these situations, having preventative maintenance done by a professional extermination firm is almost always a good idea. In some instances, the firm may offer you a termite bond. This is similar to an insurance policy, as the exterminator agrees to pay for any termite damage that occurs during the life of the contract.
In some cases, small animals might enter your home through holes in the roof or siding and cause damage. These types of issues are almost always excluded, so keep up your home maintenance and don't allow animals, such as squirrels, raccoons or bats, to obtain access points into your residence.
Read your home insurance policy carefully to be certain you know exactly what perils or hazards are covered. If you have any questions, check it out here or contact your insurance agent for more information.