Homeowners insurance provides financial protection against various types of disasters. A standard policy insures the home itself and all the things that are in it.
Homeowners policy is the so-called package policy. It means that it covers both damage to your property and your liability for any injuries and damage of the property which you or members of your family cause to other people. It includes damage caused by household pets as well.
Damage caused by most disasters is also covered but there are several exceptions. Mainly, the most significant are damage caused by floods, earthquakes and poor maintenance. That’s why you should buy two separate policies for flood and earthquake coverage.
TYPES OF DISASTERS COVERED
Most policies cover all disasters described below. Some policies provide coverage only for the first 10 types of disasters. Check your insurance policy to see the perils covered.
1. Lighting or fire;
2. Explosion;
3. Windstorm or hail;
4. Riot or civil commodity;
5. Damage caused by aircraft;
6. Damage caused by vehicles;
7. Smoke;
8. Vandalism or malicious mischief;
9. Volcanic eruption;
10. Theft;
11. Falling object;
12. Weight of ice or snow;
13. Sudden and accidental tearing apart, burning or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system;
14. Accidental discharge or overflow of water or steam from within plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance;
15. Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of household appliances;
16. Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component).
All perils except earthquake, flood, nuclear accident, war, landslide and others are specified in your policy. Check it for a complete list of perils excluded.
TYPES OF DISASTERS NOT COVERED
1. You can purchase flood coverage straight from your insurance agent. Flood insurance is also available for renters as well as homeowners. You will need this type of insurance if you live in a designated flood zone. But you should also buy it if your house could be flooded by melting snow, an inundation creek or water running down a precipitous hill. There is a 30-day waiting period before coverage takes effect.
2. Earthquake coverage is available from most insurance companies. In states, which are prone to earthquakes, like California, the policy comes with a high deductible.
3. Problems related with maintenance are only the homeowners' responsibility.
