What does my insurance policy cover?

If you have several ‘spare’ hours and perhaps a law degree, then reading and understanding your homeowners insurance policy should not be a problem, right? Wrong! The majority of policy holders do not fully comprehend the terms of their policies and when faced with property loss or damage, still ask the timeworn question: What does the insurance cover?

The purpose of homeowners insurance is to reduce your financial liability against risk. Risk is defined as a probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities. The insurer agrees to indemnify (compensate) loss or damage as long as the insured take preemptive action to reduce risk and protect their own property.
The following is some basic information concerning homeowners insurance:

  1. Homeowner policies have specific coverage dates which expire. You are not insured outside of that time frame unless the policy is renewed.
  2. Basic homeowner policies DO NOT insure detached buildings. This type of coverage must be purchased separately.
  3. Insurance companies can assist you in securing flood insurance. However, it is only provided through a federal program called FEMA which has separate regulations and coverage.
  4. You are responsible to protect your home from further damage in order to be fully compensated. For example: Your roof has been damaged due to a storm. It is your duty to prevent additional destruction by covering it with a tarp, etc., and failure to do so is considered neglect and grounds for inadequate compensation. Insurance companies will usually reimburse for measures taken to prevent additional damage.
  5. The insurance company is liable to repair your home according to current local  building codes following damage.
  6. Separate insurance is required when a business is operated from your home.
  7. Homeowner policies cover acts of terrorism but do not include acts of war or damage from nuclear plants.
  8. Damages caused by the movement of earth are not covered, such as earthquakes, landslides, and sink holes.

 Our licensed team of Public Adjusters are policy experts. They will professionally manage every detail of your claim and negotiate with your insurance company to provide the most equitable and prompt settlement as possible per your policy. Call us today at 281-201-1110