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What does homeowners insurance cover?

Monday, July 15, 2019

what does homeowners insurance cover

Owning a home is often a dream come true, but it comes with many responsibilities and concerns. Homeowners Insurance is the most critical tool in your ability to maintain your investment. Designed to replace your home should a disaster strike, this type of insurance is vital for protection from all the factors that can go wrong while living in your home. 

From fire and fallen trees to theft and hail damage, the list of risks is endless. There is no one-size-fits-all policy that will cover every situation. Your mortgage company will require specific minimum limits for liability and replacement coverage, which may not be adequate for many types of hazards. 

Deductibles are another point to consider. A higher deductible means lower premiums, but do you have cash set aside to meet your deductible should you be in a crisis?  Do you understand what the limits and added riders are protecting, and more importantly, what they don’t cover? 

what does homeowners insurance cover

Your professional at Independent Insurance Associate is dedicated to understanding your specific needs and assisting in providing the best possible protection for your home. You may be surprised by the extent of questions you will be asked when putting together a comprehensive homeowners policy. 

There are many unknowns when you are choosing coverage for your home, and we offer answers to the five most common questions about homeowner policies below. These answers may help you decide on your most important coverage needs and guide you in choosing a professional to help you navigate the process.

1. Does Homeowners Insurance Cover Roof Leaks?

Homeowners Insurance may cover a roof leak when caused by sudden and accidental damage.  If your roof receives damage from fire, hail, or wind resulting in a leak, your homeowner’s policy may help pay for the repairs. It is essential to review your policy to be certain there are no exclusions for wind and hail. 

Your homeowner’s policy does not generally cover wear and tear from age or poor maintenance. The upkeep and repair of a roof is the responsibility of the homeowner, and any resulting damage from lack of care will be an out-of-pocket expense. It is a good idea to have regular roof inspections and pay special attention to the age and condition of the roof when planning to buy a home. 

2. Is Homeowners Insurance Tax Deductible?

Homeowners Insurance is only deductible on rental property. Your insurance payment is not an itemized expense for tax purposes, but in a few instances, you may be able to list some deductions. If you run a business out of your home, or if you have had a claim for damage or theft that was not fully covered, you may be able to itemize small deductions. Consult with your CPA for the current relevant answers. 

3. Does Homeowners Insurance Cover Termites? 

The quick answer is no. As a homeowner, you are required to protect your home from termite damage. Choose a reputable company to treat your home against infestation and read the fine print for their guarantees and liability if treatment fails. 

what does homeowners insurance cover

4. Does Homeowners Insurance Cover Water Damage?

Think of all the ways water can damage your home. Something as simple as a misplaced nail hammered into a hidden water pipe, standing water from a broken water heater, even a faulty water main at the street. It is essential that you understand what your policy will and will not cover. The small details should be thoroughly explained by your insurance representative to assist in making policy choices based on your risk and the potential for disaster. 

5. Does Homeowners Insurance Cover Loss And Destruction From Theft?

Homeowners insurance covers theft and vandalism of your property. The standard limits may not be high enough to replace some of your collectibles, and having a frank discussion with your agent will help you decide what is required for the right coverage. 

When choosing the best policy to protect your home, the guidance and advice from a professional will help you understand the varied requirements and options. You may need riders or umbrella policies according to the value and rarity of your personal collectibles. As your local Independent Insurance Associates, we are committed to guiding you with informed decisions for realistic, adequate, and affordable coverage. Our job is to support you in protecting your home, and we are just a phone call away if you have questions or need to make a claim. Contact us today to make an appointment to discuss your current insurance needs!