The Ten Finger T-Shirt, and Homeowners Insurance Mistakes
The t-shirt read: “Ten Fingers is Overrated”
I’d seen the t-shirt owner running on a treadmill at the gym several times. Fit, in his mid-30s, and with one arm.
Why not have a sense of humor about a challenge you must overcome- right?
Another challenge.
Some close friends of mine had a house fire on Christmas Day nearly 10 years ago. Fortunately, the damage was limited and no one was hurt, but fire damage to your home can be devastating. Even if you have insurance coverage, the process of recovering your valuables, filing a claim and possibly having to move can be traumatic.
Most people (including me before I wrote this) don’t understand what is covered under the typical homeowners insurance policy.
You can’t eliminate the risk of a house fire or weather-related damage, but you can make sure you understand your coverage. Bankrate explains 4 situations that are not typically covered under a standard homeowners insurance policy:
· Flooding: This situation may surprise you, since flooding is fairly common. Most people think that flooding is covered in a homeowners policy, but damage due to flooding is not normally covered. Fortunately, the federal government advertises flood insurance coverage options through the FloodSmart.gov site.
· Mold: The Center for Disease Control and Prevention points out that some people experience breathing problems due to mold. Your homeowners insurance policy will typically offer limited coverage for mold- or exclude coverage completely. Side note: If you have trouble with allergies, I use a Shark Air Purifier- works great.
· Sewer Lines: Many cities are not properly maintaining sewer lines, and these lines are at risk of backing up, due to the aging infrastructure. The lines are designed to handle both storm water and raw sewage. A sewer line backup can damage your home’s structure (floors, walls, electrical systems). The backup can also damage furniture and other values in your home.
· Renters Insurance: A final point for people who rent property. You landlord’s homeowners insurance on your rented property does not cover anything inside the structure. To cover your personal property, ask an insurance agent about a renters insurance policy.
To ensure that you have coverage for these issues, you can add an endorsement to your homeowners policy. Your insurance premiums will be more expensive, but you’ll have coverage. Consult with a licensed insurance agent who understands your state’s insurance laws- these laws can differ widely between states.