Flooding is not generally covered by a standard home insurance policy. The Alberta floods made the majority of residents there aware of this. Many people are not familiar with the other exceptions in their policies that they are not protected against. Following are some of the personal property exclusions, but not necessarily all of them, from standard homeowners insurance:
Structures used for business aren't covered by standard homeowners insurance. Keep in mind that all claims for business on your property will likely be denied by your insurance adjustor. Remember this if you're running any kind of business out of your home, if it's a day care, catering company, or a mail-order business for examples.
Standard policies do not cover pets, whether they are injured or are the victim of a theft. If your pet causes an injury, this will be covered. In a case where a dog bites someone, your personal liability insurance would protect you if the injured person files a lawsuit. However, you might need extra coverage for certain dog breeds, so let your agent know what kind of dog you own.
If you have neglected to properly protect your property in order to minimize further damage, this will not be included in your coverage. What does this mean? If you do not call the fire department when there is a fire on your property, your losses will not be covered. In a case where a tree falls on your home and damages the roof and you fail to protect your belongings from the rain damage, you will not be covered.
You can't file a claim based on losses caused by an outage of electricity - say, if your frozen food thaws and is ruined because of an outage.
Standard policies also do not protect against damage due to rising waters, which most people simply call flooding. But you're also not covered for water backup. Say a drain or a sewer backs up or a sump pump in your basement fails. Specific coverage for these things must be purchased if you want to avoid paying for these costly damages yourself.
If you lease space in your home or even just have a boarder who isn't related to you, his or her property is not covered by your homeowners insurance. The renter or boarder will need separate coverage in the event your home is affected by fire or another covered peril and their possessions are damaged.
Earthquakes are also not covered by standard insurance policies. That means if you live in an area prone to earthquakes, you need earthquake insurance. Standard homeowners insurance does not cover mudslides or sinkholes.
Speak with your insurance agent about what exclusions are listed in the policy. Preparations can be more easily made if you know what you are covered for, and what you are not.
Structures used for business aren't covered by standard homeowners insurance. Keep in mind that all claims for business on your property will likely be denied by your insurance adjustor. Remember this if you're running any kind of business out of your home, if it's a day care, catering company, or a mail-order business for examples.
Standard policies do not cover pets, whether they are injured or are the victim of a theft. If your pet causes an injury, this will be covered. In a case where a dog bites someone, your personal liability insurance would protect you if the injured person files a lawsuit. However, you might need extra coverage for certain dog breeds, so let your agent know what kind of dog you own.
If you have neglected to properly protect your property in order to minimize further damage, this will not be included in your coverage. What does this mean? If you do not call the fire department when there is a fire on your property, your losses will not be covered. In a case where a tree falls on your home and damages the roof and you fail to protect your belongings from the rain damage, you will not be covered.
You can't file a claim based on losses caused by an outage of electricity - say, if your frozen food thaws and is ruined because of an outage.
Standard policies also do not protect against damage due to rising waters, which most people simply call flooding. But you're also not covered for water backup. Say a drain or a sewer backs up or a sump pump in your basement fails. Specific coverage for these things must be purchased if you want to avoid paying for these costly damages yourself.
If you lease space in your home or even just have a boarder who isn't related to you, his or her property is not covered by your homeowners insurance. The renter or boarder will need separate coverage in the event your home is affected by fire or another covered peril and their possessions are damaged.
Earthquakes are also not covered by standard insurance policies. That means if you live in an area prone to earthquakes, you need earthquake insurance. Standard homeowners insurance does not cover mudslides or sinkholes.
Speak with your insurance agent about what exclusions are listed in the policy. Preparations can be more easily made if you know what you are covered for, and what you are not.
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