Home Insurance is something we are all encouraged to purchase, regardless of things like house size or location. Whether you’re building a house or have recently bought one, Home Insurance should be your number one priority so that you can ensure you and your family are protected ahead of all possible eventualities. Standard policies are readily available across what is considered a large market but finding the right policy that best suits you and your budget can often be a difficult task. The biggest demand is ensuring your policy covers everything you need. In light of this, we’ve compiled a list of some of the commonly excluded items that you might expect to appear on the Standard Home Insurance policy. Knowing what’s not covered will help you figure out what you should be looking for.
Flood Insurance is something you’d imagine would be high up the list when it comes to provisions of the standard Home Insurance plan, however, Flood Insurance is often omitted and offered separately altogether.
Depending on where you live – if your house is built next to a creek, river, lake or beside the shore – Flood Insurance may be an ‘absolute must’ or a ‘just in case’ element of your Home Insurance plan. For example, if you live in a flood plain (an areas at high risk for floods) you will be able to purchase Flood Insurance separately through the Federal Emergency Management Agency (FEMA). The maximum cost of Flood Insurance is $250k for your home and a further $100k for the contents within the home. While Insurers encourage tenants living in areas of high Flood Risk to make Flood Insurance a priority, it is also worth considering Flood Insurance if you live in urban areas, where weather can greatly increase Flood Risk potential.
Most Insurance plans do not cover pest-infestations or the resulting damage. It is generally considered to be a part of Home Maintenance as opposed to a component of the Risk Management Strategy. Again, pest damage insurance might be considered a variant by insurers depending on house location, but the potential damage that infestation may do to the contents of your home makes it an important consideration of your overall Home Insurance plan.Insurance companies generally see these types of things as the homeowners’ responsibility to maintain, and don’t cover them in most cases.
Most Home Insurance policies come with some liability protection for pet owners such as: if your dog were to bite someone and they decided to sue you as a result, you may be covered under your Home Insurance plan. However, if your pets were to do damage in the home, it is generally considered a maintenance issue and typically speaking, will be excluded from your Home Insurance coverage.
While most standard Home Insurance policies will cover losses for Fire and weather risks such as Earthquake or Storm damage, lightening and powers surges are often excluded from your standard policy. If a power surge in your neighbourhood were to cause damage to any expensive appliances or electronics, you may find that you don’t have the coverage that you thought you did to replace or repair them.
Finding the right kind of Home Insurance Policy may seem like an arduous process, but it is certainly worth while doing the research and knowing what your options are before committing to any one plan. Understanding what is not covered on your plan is an important part of the compare and contrast process. So whether you’ve just built a house or are planning to move, it is important to consult your Insurance provider and approach buying Home Insurance with a clear head.
If you find yourself trembling at the thought of purchasing Home Insurance, talk to one of our experts who can give you the advice you need on what’s best for you and your family.