Generally, flooding is not included in standard homeowners insurance. The Alberta floods made the majority of residents there aware of this. Many people are not familiar with the other exceptions in their policies that they are not protected against. Following are some of the personal property exclusions, but not necessarily all of them, from standard homeowners insurance:
Structures used for business aren't covered by standard homeowners insurance. Actually, your claims for anything on your property that is related to your business could be rejected by the insurance company. Remember this if you're running any kind of business out of your home, if it's a day care, catering company, or a mail-order business for examples.
Pets are not generally covered, whether they are stolen or injured. If your pet causes an injury, this will be covered. In a case where a dog bites someone, your personal liability insurance would protect you if the injured person files a lawsuit. However, you might need extra coverage for certain dog breeds, so let your agent know what kind of dog you own.
If there are losses on your property that would not have been incurred if you had taken measures to protect from further damage, these will be excluded. What does that mean exactly? Losses will not be covered if you have a fire in your home or on your property and you do not call the fire department. If your roof is damaged by a tree that falls and you neglect to protect your things from the rain that comes in after, coverage for those things will not be provided.
Power outages are also not covered by the policy, for example, if your frozen food is ruined because of a power outage, this will not be covered.
You know you're not covered for floods - technically called damage due to rising waters. But you're also not covered for water backup. If your sewer or drain backs up or your basement's sump pump fails, this is not included. Specific coverage for these things must be purchased if you want to avoid paying for these costly damages yourself.
If you lease space in your home or even just have a boarder who isn't related to you, his or her property is not covered by your homeowners insurance. The renter or boarder will need separate coverage in the event your home is affected by fire or another covered peril and their possessions are damaged.
Earthquakes are also not covered by standard insurance policies. For people living in a zone that has a high chance of earthquakes, special insurance for this needs to be purchased. Mudslides and sinkholes are also generally not covered by standard home insurance.
Speak with your insurance agent about what exclusions are listed in the policy. When you have this knowledge, you will know how to prepare.
Structures used for business aren't covered by standard homeowners insurance. Actually, your claims for anything on your property that is related to your business could be rejected by the insurance company. Remember this if you're running any kind of business out of your home, if it's a day care, catering company, or a mail-order business for examples.
Pets are not generally covered, whether they are stolen or injured. If your pet causes an injury, this will be covered. In a case where a dog bites someone, your personal liability insurance would protect you if the injured person files a lawsuit. However, you might need extra coverage for certain dog breeds, so let your agent know what kind of dog you own.
If there are losses on your property that would not have been incurred if you had taken measures to protect from further damage, these will be excluded. What does that mean exactly? Losses will not be covered if you have a fire in your home or on your property and you do not call the fire department. If your roof is damaged by a tree that falls and you neglect to protect your things from the rain that comes in after, coverage for those things will not be provided.
Power outages are also not covered by the policy, for example, if your frozen food is ruined because of a power outage, this will not be covered.
You know you're not covered for floods - technically called damage due to rising waters. But you're also not covered for water backup. If your sewer or drain backs up or your basement's sump pump fails, this is not included. Specific coverage for these things must be purchased if you want to avoid paying for these costly damages yourself.
If you lease space in your home or even just have a boarder who isn't related to you, his or her property is not covered by your homeowners insurance. The renter or boarder will need separate coverage in the event your home is affected by fire or another covered peril and their possessions are damaged.
Earthquakes are also not covered by standard insurance policies. For people living in a zone that has a high chance of earthquakes, special insurance for this needs to be purchased. Mudslides and sinkholes are also generally not covered by standard home insurance.
Speak with your insurance agent about what exclusions are listed in the policy. When you have this knowledge, you will know how to prepare.
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