Insurance protects your home from accidents and disasters. But your home insurance doesn’t cover everything.
Here are four home insurance myths that might clear up what is and isn’t covered by the insurance.
Myth – Termite and mold damage are covered
One common mistake people make is thinking their home is covered from all sorts of damage. Well, this isn’t true, especially when it comes to mold and termite damage, and to be honest, insurance companies have a solid argument for this.
Insurance companies cover your property from damages that are accidental, sudden and in which you have no part in. But mold can be classed as something that is caused by homeowners’ negligence. So, they are well within their rights to deny you coverage since they can claim you could have prevented this but didn’t take care of the property in time. However, if the mold infestation is caused by something that is covered, the insurance company might cover the mold damage for you. An example would be water from a burst pipe. If the mold is the result of a burst pipe water damage, you might be covered depending on your policy terms and agreements.
For Termites, it’s similar, but a different condition. Standard insurance will not cover something that is a result of years of growth. Since termites take 3-5 years to infest your home, this also comes under the negligence argument. That’s why it’s highly unlikely that your insurance company will cover this.
Myth – My home is covered from a neighbor’s falling tree by the neighbor’s insurance company
If a tree falls on your house in a storm and damages your property, it will be covered by your insurance company. But what happens if your neighbor’s tree falls on your home? Who’s insurance covers that? Your insurer or your neighbor’s?
Some people seem to think it the latter, which is not the case in most states, unless the tree was clearly vulnerable and about to fall anyway, which your neighbor didn’t bother to take care of. Other than that, your neighbor or their company is not liable for the damage.
But don’t worry, that’s what your home insurance is for. It’ll cover the damage anyway, whether the tree is from your own lawn or your neighbor’s.
Myth – Everything I have in my house is covered
Standard home insurance policies cover most of your personal belongings. Your furniture, your appliances, personal items, they are mostly covered. However, standard insurance doesn’t usually cover luxury items.
If you have expensive paintings or rare jewelry, you might want to get the papers checked. See if they are insured or not. If not, you can discuss extended coverage for an additional fee.
Myth – My home insurance will protect me from a flood damage
Flood is not a sudden incident like burglary. It develops slowly, like termite infestation. That’s why for the same reason as termite damage, even though water damage like burst pipes, overflowing, etc. are covered, flood damage is not. You can purchase flood protection from your home insurance company to ensure you are covered. But before that, make sure to check Federal Emergency Management Agency’s map service center to understand what type of flood damage you should expect.
