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Many homeowners mistakenly believe that when they purchase insurance for their home, everything is covered. However, this isn’t the case. Although coverage varies by provider and policy, most standard homeowners insurance policies typically exclude the following five things.
1. Floods
Heavy rain and other extreme weather events can cause water to enter a home, damaging walls, flooring, furniture, and the structure itself. Flood insurance typically must be purchased separately from homeowners insurance in National City. Homeowners should understand that flood coverage may be available through the National Flood Insurance Program (NFIP) or private insurers. Many people who don’t live in coastal areas or designated flood zones believe this type of insurance doesn’t apply to their situation. However, flooding can also affect properties in areas considered to have a lower flood risk.
2. Business Equipment and Structures
For those running businesses from their homes, it’s important to understand that most standard homeowners policies provide limited coverage for business-related property. This may include valuable business assets, such as client records, specialized equipment, inventory, and separate structures used for business purposes. A rider or endorsement may be available to extend certain coverage limits. Alternatively, a separate business insurance policy in National City can help cover eligible business-related risks.
3. Water Backup and/or Sump Pump Overflow
When a large amount of rain falls in a short period, the ground may not be able to absorb all the water immediately. Excess water can collect underground and beneath basement floors. A sump pump is designed to remove this subsurface water before it floods the basement and causes water damage or mold. Although water backup coverage isn’t included in many standard homeowners policies, some insurance companies offer it as an optional endorsement to help protect against certain water backup and sump pump overflow losses.
4. Cash, Valuables, and Collectibles
Most homeowners insurance policies place special coverage limits on valuables, collectibles, and cash. Families who keep valuable items at home may find that their standard policy limits aren’t enough to cover their full replacement value. Highly valuable items, such as silver, coins, heirlooms, firearms, fine art, and jewelry, may require additional coverage. You may be able to add scheduled personal property coverage through an endorsement or a separate policy to provide higher limits for eligible valuables. Keeping fine jewelry, cash, and coins in a secure location can also provide additional protection.
5. Foundation Cracks Due to Settling
Over time, the ground beneath a home can shift, causing the house to settle and potentially creating cracks in the foundation. These cracks may eventually lead to damage to walls and other structural problems. An inspection before buying a home is essential because it can identify existing foundation issues. Most standard homeowners insurance policies exclude damage caused by normal settling, shrinking, or expansion of a home’s foundation and walls. However, coverage may depend on the cause of the damage and the specific policy terms, so homeowners should review their exclusions with their insurance provider.
If you own a home or are considering buying one in National City, take the time to understand exactly what your homeowners insurance policy does and doesn’t cover. It could save you a lot of time and heartache. The friendly professionals at Altra Insurance Services will be happy to help you review your current policy and determine whether you have the coverage you need. We can also help you with renters insurance in National City and other insurance options. Call one of our friendly agents today at (619) 404-6311.