While homeowners insurance comes in many types, the average policy has exclusions. Exclusions are things the policy doesn't cover, and you should know these. After all, you might want to add extra coverage to your plan to cover these exclusions. So what does a typical policy cover, and what exclusions exist? Keep reading to learn these answers.
What typical policies cover
When you buy homeowners insurance, you buy protection for your home. This policy generally covers damage from storms, such as wind, hail, and snow. It also covers damage from fire and water. This coverage compensates you for damages to your home and belongings. A typical policy has a coverage limit for belongings, but most require proof of personal items when filing a compensation claim. The amount of compensation your policy provides depends on several things. For example, it depends on your coverage amount. It also depends on the repair costs.
What typical policies exclude
After learning what a normal policy covers, you'll also want to know what a regular policy excludes. Most policies exclude many things. For example, a homeowners insurance plan doesn't cover flood damage. So if a flood occurs in your neighborhood, you probably won't have coverage. Additionally, most home insurance policies exclude damage from earthquakes and other rare occurrences.
Another thing to understand is that your policy might not cover every asset you own. Most policies exclude coverage for expensive items. For example, if a fire causes damage to your expensive art collection, your policy might not compensate you for the full value of the art.
You can add coverage
So how do you handle your home insurance coverage? You have several options. First, you can purchase a basic policy and live with the coverage it offers. If you experience damage, you'll receive compensation if your policy covers the peril.
Secondly, you can maximize your plan. You can add coverage to your existing plan to provide more protection. For example, you can add riders to your plan that cover every personal item you own.
Finally, you can purchase additional policies. An example of this is a flood insurance plan. You can buy a flood insurance plan if your home is in a flood zone. Then you'll have protection if a flood damages your home.
Talk to an insurance agent
Purchasing homeowners insurance is essential if you own a home, but having the right coverage types also helps. Talk to a home insurance agent to learn more about coverage options.