Like many homeowners, you probably made arrangements for your homeowners insurance when you first purchased your home, and haven’t given it a second thought since that original paperwork was signed. While it is great to know you have an insurance company that will provide you hassle-free coverage year after year, you may not be doing yourself any favors. Keeping up to date on your coverage by reading the fine print of your policy may save you hundreds or thousands of dollars, should you find yourself in a position to file a claim. Unfortunately, many homeowners do not take the time to read the fine print. Following are a few important areas of coverage that may be excluded by the fine print of your policy.
Most homeowners insurance policies do not include flood insurance, which is why the federal government created the National Flood Insurance Program. If you live in a flood zone, or have concerns about flooding, don’t assume that you will be covered by your current standard policy. Read to fine print to find out if you are covered for flood damage. Chances are high that you are not. If flood damage is not included in your policy, consider acquiring the extra coverage you need to protect your home and belongings.
Large and Small Disasters
Many times when a representative who works for your chosen insurance company goes over your coverage with you, he highlights the large scale disasters that you would be covered for. He may point out that you would be covered for things like fire, lightning, or theft. However, he may fail to point out that disaster coverage may not cover damage that takes place on a seemingly smaller scale, like mold or termite damage. If the fine print does not specifically state it will cover damage brought on by a specific disaster, it probably won’t cover it. Fortunately, specific coverage can usually be added to your policy for a few dollars more.
Liability for Business Use Of Your Home
Many policies include liability coverage to some extent, but some policies specifically state that this coverage does not apply to the business use of your home. That means if a person is injured in your home and they sue you, you are probably covered. But, if you are running a daycare in your living room and an accident occurs, you are on your own as far as your insurance company is concerned. In most cases, coverage to apply to the business use of your home is fairly simple to add to an existing policy. Read the fine print to know if this is something you need to add to your current coverage.
Check out our article “Homeowners Insurance when not to file a claim“.
Reading the fine print of an insurance policy can be a rather tedious task, which is why it is important to have an outstanding insurance broker on your side. Our team would be happy to sit down with you and thoroughly explain your coverage to you, and make recommendations on how you can get the most coverage for your money, without purchasing unnecessary, excessive coverage. Start that conversation today by contacting us!
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Rob Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953.