Homeowner’s insurance covers many damages, including theft, wind or fire perils and more. It adds liability insurance to the standard hazard policy to cover any injuries to people on your property. Your homeowner’s insurance kicks in, for example, if your dog might bite a child.
But many potential disasters aren’t covered, such as flood and earthquake damage. Look at the exclusions category of your homeowner’s insurance to see what your existing policy doesn’t pay for. If you’re at risk for these scenarios, additional insurance policies are available (and may even be required from lenders if you’re taking out a mortgage).
Here are common exclusions not covered by Home-owners insurance
- War
- Neglect
- Water damage (can be covered in certain geographical regions)
- Earth movement (can be covered in certain geographical regions)
- Power failure
- Ordinance or law
- Intentional loss
- Nuclear hazard
In the case of the destruction of your home, many policies cover your loss up to an initial estimate, but some policies provide guaranteed replacement, which covers the complete repair or rebuilding costs.
Also, check your deductibles, the amount you must pay out of pocket before your benefits kick in. If you have the cash flow to handle the initial costs should anything happen, you may want to opt for a higher deductible to lower your premium. Claiming small losses on your homeowner’s insurance can increase your rate, and the insurer can cancel your policy in some circumstances.
Renter’s insurance protects against the loss or destruction of your possessions. If you are a renter, you want to make sure you have it, because your landlord’s insurance doesn’t cover you.
Renter’s insurance is often very affordable, and many landlords require it before accepting a lease. Similar to homeowner’s, renter’s insurance also provides your personal liability coverage. If someone visiting you is injured in your home, the insurance company pays. But there are also exclusions present in Renter’s insurance. Here are some common ones:
*Jewelry
*Electronic
*Computer Equipment
*Art
*Collections or Collectibles
To get the best possible coverage on your Homeowner’s insurance make sure to contact us at Parr Insurance
773-489-3001
2157 N. Damen Ave
Chicago, IL