People often get frustrated with insurance because they do not know what is covered and what is not covered. Insurance Policies have specific “perils” that they insure against.
Some common sources of damage that a Homeowners Policy protects against are:
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Fire
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Lightning
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Explosion
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Windstorm & Hail
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Smoke
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Aircraft &vehicles
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Riot & Civil Commotion
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Vandalism
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Sprinkler Leakage
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Sinkhole Collapse
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Volcanic Action
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Falling Objects
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Weight of Ice & Snow
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Water Damage (excluding flood)
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Collapse
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Theft
All of these are subject to limitations. For example, the water damage coverage could be voided if the water damage is more than a month old. The Conditions section of the insurance policy will help clarify what those conditions from one insurance company to another.
Just like there are specific things that the policy is meant to insure against, there are things that the insurance company does not want to insure against with their policy. Some things that are not covered under a Homeowners Policy are:
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Ordinance or Law
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Earth Movement
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Flood
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Power Failure
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Neglect
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War
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Nuclear Hazard
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Intentional Loss
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Government Action
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Settling or cracking
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Insect, Bird or Animal Infestation
This list is dependent on the policy itself. The coverage from one insurance company to another will vary so you should look at the Exclusions Section of the policy to be sure what your policy is specifically not covering. If there is coverage that you want that is excluded from your policy you can request it from your agent for an additional charge.
Understanding what you are buying is an important part of protecting your assets. Read your policy carefully and consult with a licensed agent to make sure that you understand the policy you are buying.