Homeowners Insurance - All What You Need to Know about Your Insurance Policy Exclusions

By Adams Bridges

Your home is your biggest investment and the place where you keep your possessions and your valuable items. Leaving your home vulnerable to any disaster without an adequate homeowners insurance coverage makes you learn the lesson the hard way in case you face any mishap. In this article I mention common homeowners insurance exclusions most of homeowners pay no attention to it while they buy their policy.

Homeowners insurance policy doesn't cover the damage caused by lack of maintenance or common wear and tear. Insurance companies don't pay out for claims regarding losses caused by old pipeline or electrical systems although damage due to sudden accidents such as frozen pipes is fully covered under your homeowners insurance policy. It's your responsibility as a homeowner to keep your home maintenance up-to-date to prevent any unforeseen accident.

If you keep your expensive possessions such as jewelry in your home you need a rider or a special insurance policy for your costly valuables, other than your basic homeowners insurance policy. Most of homeowners insurance companies exclude high-priced items like fur, artwork and laptop from the insurance coverage or may limit the claim payment to $ 1800 in case of loss. You have to read your policy small print to know how much your insurance company compensates you for your valuables.

Standard Homeowners insurance policy covers damages caused by some natural disasters like hail, snow and lightening, on the other hand natural-disasters damages caused by flood and earthquake is not covered in basic policy. If you bought a home in an area prone to flood or earthquake, your mortgage lender will require you to buy a separate insurance policy against any of these natural disasters. Earthquake or flood Insurance costs are low in states far from earthquake and flood prone areas.

Your Personal liability is covered under your homeowners insurance policy. In case one of your visitors was injured in your premises or anybody was hurt or his property damaged by your pet. The insurance company will pay out for any medical or legal costs if a lawsuit was filed against you and the court find you at fault. The insurance company doesn't pay out for any damage in your dwelling caused by your pet or members of your family.

Bear in mind those homeowners insurance exclusions if you need to file a claim. Read your insurance policy carefully and pay attention to the small print.