We put so much hope into the homeowner’s insurance policies. They keep our homes safe. They make us feel better. There’s a catch. The home insurance policies aren’t as strong as you may think. They’re totally different and cover completely different worst-case scenarios. Here’s a quick overview of the most common things typical homeowner insurance doesn’t cover.
1) Home renovations:
Here’s something you should be aware of when it comes to renovation works. You need a special policy to cover all potential risks. Even if your contractor comes with a builder’s risk policy, you are still far away from the safe zone. The paradox is that this policy covers new construction works, but not the renovations of the existing structures. In plain English, if you are up to some cosmetic updates to make your home cozier, there’s nothing to worry about. However, if you need to replace your roof then your standard homeowner insurance just isn’t enough. Play smart and ensure peace of mind for your loved ones by investing in additional homeowner insurance policies.
2) Earthquake damages
The bitter truth is that even California homeowners have to make additional investments in additional earthquake insurance policies. Otherwise, the potential earthquake damage is going to be a total disaster for your home and especially your finances.
3) Sinkholes
This is something you watch on YouTube and keep repeating – it’s not going to happen to my house. If the earth swallows your home you are totally uncovered in terms of the insurance. You know what this means, don’t you? You need additional insurance as soon as possible.
4) War damages
If our government says that the USA is at war then we are at war and there’s nothing you can do about it. So, if your home gets destroyed or damaged, you can forget about insurance compensation. The good news for homeowners, though, is that the acts of terrorism are generally covered by regular homeowner insurance policies.
5) Illegal activities you aren’t aware of
If you are a Breaking Bad fan then you know what this means. If your home is used to conduct some illegal activities and damages occur, then you have to cover them from your own pocket. That’s why you have to keep a close eye on your tenants’ activities among other things.
Make no mistake about it, this list goes on. So, what can you do about it? Well, investing in additional home insurance is always a good idea. Of course, you shouldn’t become obsessed with the worst-case scenarios. You just can’t cover all the things that can go wrong with your house. However, you can evaluate your situation and the area where you live. Choose some of the very likely unwanted scenarios that can damage your home and get covered by appropriate additional insurance. Play smart and ensure peace of mind for your loved ones by investing in additional homeowner insurance policies.
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