When It Rains…

The other night I was awoken by a pretty severe thunderstorm. Bright lightning and heavy rains lasted throughout the night. By daybreak, it had rained nearly three inches in the span of six hours.

Naturally, I thought, “time for an article.”

The heavy rain made me think about what would happen in the event of a flood. The reason why is that most home insurance policies specifically exclude damage from flooding. That is, if water seeps into a basement from heavy rains and damages the area, homeowner’s insurance would not apply. A specific flood insurance policy is needed.

However, flood is not the only peril home insurance policies will generally exclude. In many cases, most home policies will exclude the following perils.

  • Flood
  • Earthquake
  • Neglect
  • Termites
  • War
  • Intentional loss

Additionally, most home policies (including renters or condo insurance) will exclude or limit coverage on personal property for the following.

  • Business Property
  • Cash
  • Antiques
  • Jewelry
  • Coins
  • Collections
  • Art
  • Firearms
  • Intentional loss
  • Automobiles (covered under auto insurance)

Lastly, many home policies will exclude or limit the amount of liability coverage on the policy from the following.

  • Business Use
  • Pools
  • Trampolines
  • Certain Pets (such as dogs deemed “vicious”)
  • Intentional acts
  • Illegal Acts/Activities

Many companies do allow policyowners to endorse their current policies. This means providing coverage separate from the home policy, for a specific item such as a wedding ring, firearm, painting, coin collection, etc.

If you’re in doubt, feel free to let us know or speak to your insurance agent.

The post When It Rains… appeared first on Getting Your Financial Ducks In A Row.

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jim@blankenshipfinancial.com (Jim Blankenship)

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