What is not normally covered by Homeowners Insurance?

What is not normally covered by Homeowners Insurance?
In this guide, we'll go over the specifics of what is and isn't covered by a homeowners insurance policy. We'll go over the specifics and questions that are important to you. For example, you might wonder if a standard homeowners insurance policy covers mould, termites, roof leaks etc.

What are 3 things homeowners’ insurance would cover?
1. Protection for the home's structure
If your home is damaged or destroyed by fire, hurricane, hail, lightning, or other disasters listed in your policy, your homeowner’s policy will pay to repair or rebuild it. Most policies also cover detached structures like a garage, tool shed, or gazebo for about 10% of the amount of insurance you have on the house's structure. A standard policy will not cover damage from a flood, earthquake, or normal wear and tear.

Remember this simple rule when purchasing coverage for your home's structure: Purchase enough insurance to cover the cost of rebuilding your home.

2. Protection for your personal belongings
Your furniture, clothes, sports equipment, and other personal belongings are protected if they are stolen or destroyed by fire, hurricane, or other insured disasters. The coverage is typically 50 to 70 per cent of the insurance you have on the house's structure.

A home inventory is the best way to determine if this is adequate coverage. Personal belongings coverage extends to items stored off-site, which means you are protected anywhere in the world. Some companies cap the amount at 10% of the amount of insurance you have on your belongings. You also have up to $500 in coverage for unauthorized credit card use.

3. When the house is being reconstructed
It's unlikely, but if you are forced to leave your home for an extended period, it will undoubtedly be the best insurance you have ever purchased. This section of insurance is known as additional living expenses.

What are the six categories typically covered by homeowners’ insurance?
1. Dwelling Coverage, A
The first coverage section of your homeowner policy protects your home and any attached structures, such as garages, decks, or fences. A typical policy will cover your home if it is damaged by a variety of perils (also known as causes of loss), such as fires or storms. However, the following types of losses are typically not covered by a homeowner’s policy:
  • Earthquake
  • Flood
  • Inadequate maintenance
  • Insect or vermin-caused damage
  • Wear and tear, gradual deterioration or damage
2. Coverage B
Structures that are not attached to the home, such as a detached (separate) garage, storage or utility shed, playground equipment, and swimming pools, are covered under this coverage section.

3. Personal Property (Coverage C)
This covers your belongings, whether they are at home or on vacation with you. Personal property insurance is frequently provided on a named peril basis. This means that the policy only covers the causes of loss listed in the policy section. There are also limitations and exclusions to the coverage. Property with high monetary value, such as jewellery, fine arts, collectables, and so on, may necessitate special safeguards. Discuss with your agent the possibility of scheduling (adding) coverage on a floater, which broadens and extends coverage for high-valued possessions.

4. Loss of Use, Coverage D
This coverage pays for additional living expenses while your home is being repaired. The coverage also applies if the house is rendered uninhabitable. The loss or loss of access, however, must be the result of an event covered by the policy. 

5. Personal Liability (Coverage E)
If you are legally responsible for causing property damage or bodily harm, this Coverage Part will respond. Protecting yourself entails paying for your defence costs as well as any financial judgement.

6. Medical Payments, Coverage F
This Part provides immediate reimbursement for minor injuries, such as a visitor tripping and falling while visiting your home. A family member is not covered under this policy. 

For example, if your child and your neighbour’s child are both injured while playing and require treatment at the emergency room, this coverage will cover your neighbour’s expenses but not your own.

Does home insurance cover wear and tear?
No, not usually. Wear and tear are not covered by standard home insurance policies. They are put in place to protect you from damage caused by an unexpected or sudden event, such as a flood or fire.

To get more information contact The Watchtower Dubai today!
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