Is Your Home Insured For Everything You Think It Is?
There's no good time to discover that your home and contents insurance isn't as inclusive as you thought, but surely the absolute worst time to find out has to be when you make a claim. Don't be caught short: take the time to check out your home insurance policy and find out exactly what you're covered for.
Coverage for pest damage seems like a logical inclusion for homeowner's insurance—but many homeowners find, to their dismay, that their policy doesn't cover any kind of pest damage at all. In fact, even though termites alone cause around $5 billion worth of damage to American properties annually, pest damage is not covered by most homeowner's insurance policies.
Depending on where you live, your home may be at risk of damage by one or more pests, such as termites, rodents, roaches, or bed bugs. The cost to repair pest damage can climb into the thousands, and for the most part, not a single penny is covered by insurance. Why? Two reasons: first, that most pest damage is preventable by keeping up with home maintenance and pest control. And second, insurance companies are in the business of assessing risk and making predictions—and pest damage is extremely hard to predict. Therefore, few insurers will provide coverage for any form of pest damage.
Natural disasters include things like wildfires, floods, earthquakes, and heavy winds. A standard homeowner's insurance policy covers some of these things, but not all of them. Your requirements for natural disaster insurance may depend on where you live and whether you own your home outright, as some mortgage lenders require that a home have one or more types of natural disaster coverage. So what's covered?
Standard homeowner's insurance does cover wind and hail damage caused by heavy storms, including tornadoes. It's not dependent on where you live, but if you're in an area where there's a high risk of heavy winds, you might pay more for your insurance.
Fire damage is covered by a standard policy, but again, you'll probably pay a higher premium if you're in a high-risk area.
Flood insurance isn't included in a standard policy, but if you live in a high-risk flood area (as designated by FEMA) your mortgage lender will probably require you buy a flood rider.
Similarly, earthquake damage isn't covered by a standard policy, and if you live in a high-risk area your lender may require you purchase an earthquake rider. Premiums for earthquake covered tend to be pricy.
Note that insurance doesn't cover preventable losses, or wear and tear. If your bathroom floods and destroys the hallway carpet, that's not the kind of flood damage that's covered, because it could have been prevented; and a piece for furniture is old and worn and needs replacing, that's wear and tear, and isn't covered either.
There are some exceptions: for example, if flooding occurred because the temperature dropped far enough that pipes froze and burst, that's a non-preventable hazard, and is covered by insurance.
Homeowner's insurance covered fittings and furnishings, personal belongings, and certain other items if they're stolen or lost, or if they're destroyed by an insured disaster like fire or tornado damage. If you have “off-premises” coverage, your possessions are also covered even if they're lost or stolen from you in another country.
However, there are coverage limits for certain kinds of items—like furs, guns, silverware, and jewelry—and that means they may not be covered for their full value. To completely cover such items it's necessary to purchase additional coverage for their appraised value.
Guaranteed Replacement Cost
Something that applies to coverage for both the home and its contents is guaranteed replacement cost versus actual cash value. This is an important concept: because of depreciation and/or marketplace fluctuations, the actual cash value of a home or item at the time it's damaged or destroyed isn't necessarily the same as the cost of replacing it. For example, a home that was completely destroyed by fire may end up costing more to rebuild than it was insured for, depending on the real estate market and costs of materials and labor. Similarly, items like electronics, which depreciate rapidly, are unlikely to be covered for their full replacement cost.
Floodsmart. “About the National Flood Insurance Program.” Accessed January 13, 2015.
Insurance Information Institute. “What is Covered by a Standard Homeowner's Policy?” Accessed January 13, 2015.
Insurance Quotes. “How Pests Affect Homeowner's Insurance Policies.” Accessed January 13, 2015.
Pest World. “Spotlight on Termites.” Accessed January 13, 2015.
Quotezone. “Compare Home Insurance.” Accessed January 13, 2015.
This Old House. “Homeowner's Insurance 101.” Accessed January 13, 2015.
Home for Sale in denver, Colorado
- Ways to Clean Your Porcelain Sink Before You Sell Your Home
- Greeley Colorado Real Estate
- Home Impovement with a Bathroom Remodel
- Denver is Number 9 on the Highest Performing Major Metro Markets through November 2016
- Boulder Real Estate near CU Campus - A Savvy Investment
- Effects of Mortgage interest rates after Donald Trumps Election and how it will affect Denver local Real Estate Market
- New Listing Coming Soon! 11171 Bryant Ct. Westminster, CO 80234
- Recently Sold 11537 East Amherst Circle South Aurora, CO 80014
- Beautiful home for sale in Cottonwood Point Dr Fort Collins Colorado just below $1million
- Greeley Real Estate - Greeley Homes for sale
- 1 % Down Conventional Loan
- Benefits of living in energy efficient homes
- It’s a Good Time to Buy Real Estate with 97% LTV
- New Listing Coming Soon! 9063 Eldorado, Frederick CO 80505
- Boulder Real Estate
- Neighborhoods to Watch- Historic Downtown Loveland Homes
- About | Denver Real Estate Agent | Armstrongre.com
- Home Builder's Websites In Colorado
- Denver Real Estate Market
- Living in Fort Collins, Colorado
- What You Need To Know About Denver Relocation
- Its A Good Time To Buy Real Estate With 97 Percent Ltv
- Why An Occupancy Certificate Is Necessary Before Investing In A Property
- 5 Remodeling Projects: Better To Diy Or Hire A Pro?
- Boulder Horse Properties For Sale Offer Buyers The Best Of Both Worlds
- How To Prepare Homes For Sale
- How to Become A Successful Real Estate Agent
- Common Mistakes While Seeking A Commercial Mortgage Loan
- 6 Vital Things To Keep In Mind Before You Buy A House
- The Best Time Of The Year To Buy A Home
- How To Get Approved For A Home Loan
- Few Information You Must Pay Attention Prior To Your Real Estate Investments
- Factors That Play Key Role In Re Investment
- How To Sell Your Denver Probate House
- Buying A Home With A Backyard Playground
- Investing In Boulder Real Estate May Earn CU Parents An A+ In Personal Finance
- Top Places To Live- Loveland Colorado
- Cherry Creek North Real Estate
- Denver And Northern Colorado Golf Course Communities And Country Clubs
- President Obamas Reelection And The Denver Housing Market
- Denver Area Horse Properties And Equestrian Facilities For Sale
- Luxury Real Estate Market In Denver Is On The Rise
- Hip Urban Denver Neighborhoods
- Techniques To Disaster Proof Colorado Homes In The Wake Of Hurricane Sandy
- Peyton Mannings New Cherry Hills Village Home
- Wal-mart Opts Out Of New Congress Park Store At 9th And Colorado
- Great New Listing At 617 Valley View Rd In Loveland Colorado 80537
- Top Denver Luxury Neighborhoods
- Boulder Colorado Real Estate And Community
- Prime Time For Homeowners To Sell In The Denver Housing Market
- Westminster Real Estate and Community
- Historic Old Town Longmont - hub for Arts, Entertainment & Real Estate
- Bonnie Brae - Denvers Gem Of Residential Real Estate
- Townhome For Sale At Westbury Farms At Apple Valley In Westminster Colorado
- Home For Sale In Saddle Rock Ridge In Aurora Colorado
- New Brownstone Listing In Ridgegate Subdivision Located in Lone Tree Close To Park Meadows Mall
- Protect Your Outdoor Properties This Spring
- How To Start A Janitorial Service Business Cleaning Real Estate Properties
- FHA Mortgage Insurance Premiums Set To Rise Again In April
- Complete Information On Hud Guidelines On Mortgage And Real Estate
- Aurora Colorado Real Estate And Its Community
- Denver Luxury Real Estate- Cherry Creek
- Home Mortgage Refinance Are You Sure Of The Steps To Take
- Capitol Hill Denver -hub Of Historic Real Estate And Urban Culture
- Highlands Is Distinctly One Of Denver Most Culturally Rich And Lively Destinations
- Washington Park Denver Colorado- Denvers Historical Treasure And Modern Center Of Real Estate And Culture
- Denver Colorado Ranked As Third Fastest Selling City In Real Estate
- Mortgage Relief Fraud- Will You Be The Next Victim
- Short Sales In Denver- Why The Term Strategic Default Can Be Misleading
- Colorado Premier Apartment Locating Service
- Here Are Seven Reasons To Own Your Home Vs Rent Denver Colorado
- Thinking Of Buying A Home In Denver- Here Are 10 Questions To Ask Your Home Inspector
- Thinking Of Hiring A Real Estate Agent In Denver-here Are Some Good Questions To Ask
- Lenders Checklist- What Documents You Need To Get A Mortgage
- Thinking About Doing A Short Sale
- Specialty Mortgages- Risks And Rewards
- Buyers Market For Luxury Condos And Lofts In Downtown Denver
- Taking The Stress Out Of Buying A Home-Denver Real Estate
- 10 Ways To Prepare For Homeownership In Colorado
- Basic Tax Benifits To Home Ownership-Denver Real Estate
- A Look At Parker Colorado And Its Real Estate Market
- Denver Real Estate And Its Neighborhoods
- Fort Collins Real Estate- Reasons Why You Should Move To The Area
- Homes For Sale In The Hilltop And Crestmoor Park Area Of Denver Colorado
- Solving Your Mortgage Crisis Just Got Easier- 5 Steps For A Successful Short Sale
- Arvada Real Estate And Homes For Sale
- An Overview Of Cherry Creek Real Estate And Homes For Sale In The Area
- Local Denver Agent Releases New Report For Homeowners Seeking To Avoid Foreclosure
- Not Every Real Estate Agent Is A Realtor. Find Out Why You Should Hire A Realtor To Sell Your Next Home In The Denver Area
- Learn About The Pros And Cons To Flipping Houses In Denver
- Colorado Home Foreclosure Update How To Get A Good Foreclosure Property In Colorado
- Greenwood Village Real Estate Denver Colorado
- Lakeside Cross County Oregon Real Estate For Sale
- Real Estate In Parker Colorado Outside Of Denver City Limits
- Aurora Homes For Sale Aurora Denver Real Estate Homes
- Castle Rock Denver Colorado Real Estate
- Fannie Mae Launches A New Video To Help Educate Homeowners About Options To Avoid Foreclosure
- Cherry Creek Denver Real Estate Market
- The Hidden Options Of Real Estate Auctions And Foreclosures
- Understand All Of The Options Available When Faced With Foreclosure
- A Profile Denver Neighborhood
- Luxury Living In Castle Rock And Greenwood Village Colorado
- Denver REO Properties- Still An Abundance
- Understanding The Basics Of A Short Sale
- Although The Rest Of The Nation See A Decline In Real Estate Prices,Denver market Seems to Outshine The Rest
- How To Pass And Study For Denver Colorado Real Estate Exams
- Rent To Own Agreement In Denver Colorado
- New Construction Sales Still Down in Denver
- Denver Luxury Real Estate Market On The Rise
- Big Deal In Denver Colorado Multifamily Apartment Market
- Denver Colorado Real Estate Market
- The Denver Economy