Spark Global Limited Reports:
You never know when a disaster is going to strike and destroy your home — whether it’s storm damage, fire damage or a burglary. One way to make sure you are financially protected in an emergency or unexpected event is through home insurance. However, there are many myths about home insurance that can lead homeowners to discover coverage gaps at a costly cost.
Common misconceptions about home insurance include what it covers, what it doesn’t cover, what type of plan is the best, and whether you legally need coverage. Here, we debunk the most common home insurance myths.
Damage caused by floods
Normally, normal water damage from broken pipes or overflowing gutters is included, but damage from flooding is usually not. This is because flooding is considered to be a gradual event, not sudden or accidental. However, some home insurance policies have special provisions for this type of damage. If your home is at risk of flood damage, or if sewers and drains are clogged, consider buying flood insurance to protect your home from flooding. In fact, some mortgage lenders need insurance even if your home is in a low – to medium-risk area. Check out the Federal Emergency Management Agency’s (FEMA) map Service to see what level of risk your home is at.
Mold and termite hazards
From the insurance company’s point of view, mold damage is a preventable problem and a homeowner’s financial responsibility. One exception is if it relates to a covered hazard, your home insurance will cover you for the event. In other words, if mold, mildew or fungus is caused by a specific problem, such as a burst pipe, then it will be covered by your policy.
Throughout the United States, most commonly in Los Angeles, California, New York, New York and Miami, Florida, termites and other pests can find their way into homes and wreak havoc. The cost of removing termites and repairing damage is usually not covered by a homeowner’s insurance policy. That’s partly because of the time it takes for termites to overrun — typically three to five years — and homeowners’ insurance covers sudden and unexpected damage. It’s also difficult to estimate exactly when the loss occurred, so if you switched insurance companies in the past few years, there may be some debate about which insurer will cover the cost.
Consider scheduling an annual mold and termite inspection, and make sure you focus on potential problem areas. Ready to learn more about what’s not covered? Don’t forget these 5 things about home insurance too!