Friday, 17 July 2020

6 Things People Assume Are Covered by Home Insurance That Usually Aren’t

Buying a first home is one of the most important events in anyone’s life, and one of the most exciting. Moving in is just one part, however, and you need to now prepare for the real responsibilities of being a homeowner. This means you’ll need to start looking at different home insurance policies before you even make your move.
Unfortunately, many first-time homeowners have some misconceptions about home insurance and have a vague idea of what it actually represents. Some will automatically assume that certain items will be covered out of common sense, but that’s not exactly how that works. That’s why you have to be informed about what is and isn’t usually covered by home insurance. Let’s take a look at some of the things people often assume are covered, but are sometimes not.

Trace and Access

It is true that many home insurance policies will include trace and access coverage, but you shouldn’t always assume that they will. Trace and access is designed to cover the cost of detecting and exposing a leak, so that it can be repaired. Trace and access coverage is what will cover the cost of detecting a leak, exposing it, and repairing the damage that was caused by the whole process. However, there are many policies that will only cover the damage that was caused by the leak and not the cost to actually repair it.
If you want to learn more about the trace and access process, have a read of the linked page by Pinpoint. They explain everything you need to do from the minute you notice a leak all the way to repair. They also explain what type of documentation you’ll need to present to your insurer in the case it is covered, and who should be appointed to detect the leak.

Damage Due to Poor Maintenance

People shouldn’t assume that home damage like mould or water damage of any sort will always be covered by home insurance. If it was found that the damage was caused by your negligence, you most likely won’t be covered. On the other hand, you might be compensated if it was caused by a peril that was covered by the insurance, like a faulty air conditioning unit, for instance.
In all cases, it’s always better to preserve your home in order to reduce damage and possible claims. This is why you should keep humidity levels to a minimum to avoid mould, and make sure that you have all covered items serviced according to the schedule to help avoid claims from being rejected.

Earth Movement

There are few things that can be as disastrous for a homeowner than losing their property due to a landslip or an earthquake. Sadly, these incidences will not always be covered by your home insurance, but there are some policies that will cover this type of damage specifically. What’s important is that you know the soil quality where you live and if your area could be susceptible to earthquakes. You’ll then be able to gauge whether getting coverage would be a good idea.

Foundation Issues

Foundation problems can be a nightmare for any homeowner, but this is one you’ll most likely have to deal with on your own. This is because most home insurance policies will not cover damage to the foundation. The only times they will is when the damage was caused by events that are covered by your policy, like storms, fires, and explosions, or subsidence, among other things.

Home Projects

Home renovations and additions are major projects with lots of planning involved, and calling your insurer may have slipped out of your mind. However, they should actually be one of the first people you contact. Many policies will have specific clauses pertaining to home renovations, and many will require that you notify them before you do any work. This is because renovations are viewed as an added risk to insurance companies, both during and after the process. For instance, homes that are being worked on will usually be less safe due to contractors on-site, leaving access to possible intruders. Then, you have to consider that additions mean more rooms to insure, which will affect your premiums.
Another thing you have to see is if you’re covered for accidental damage. This will be important if you intend to do some DIY work. Don’t expect the insurance company to cover you if you’ve made a drill hole in one of your pipes by accident.

Long Trips

Many people are completely unaware of this, but did you know that most insurance policies will have a set limit on how long you can be away from the home? As a matter of fact, most policies will not allow you to be away for more than 30 to 60 days. So, if you fancy yourself as a digital nomad, this is something you’ll have to take into consideration.

These are some of the most common items that you shouldn’t assume will be in your insurance policy. If you’re unsure about what type of coverage you need and what you should expect, we suggest you talk with a professional and consult as many independent resources as you can before you make a decision.

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