Many homeowners have some major event at their home that causes major problems and their first question is “Will My Insurance Cover the Damage on My Home?” That’s when they find out they should have talked to their insurance provider about what-if questions much sooner.
The answer is it depends, sometimes it will and sometimes it will not. We highly recommend you take some time, right now, before you have damage, to get to know your policy and to ask your provider some questions. And to help you ask those questions, we wanted to outline a few areas where we have found that owners were not covered, owners who ended up having to sell their homes as they had no way to get the repairs made.
What is Homeowners Insurance
This is a type of insurance made up of various riders or components that help to repair or replace your home and belongings if there is damage caused by specific things such as fire, wind, hail, or theft. And it may also help cover costs if you accidentally damage someone else’s property, for example, your tree falls on the neighbor’s car. Or if a visitor is hurt while on your property.
So as you are shopping for insurance, ask the providers if this insurance will cover the damage to your home.
Earthquake and Flood Insurance
While not an overly common occurrence here in the Kansas City Metro, most typical policies will not cover the damage caused by these natural disasters. One would need to purchase extra coverage for these occurrences.
Vacant Property Insurance
This is one area where we have ended up purchasing several homes because the owner had a typical homeowner policy and when they had a disaster strike, they found the question of will my insurance policy cover damage to my home to be NO.
In most policies, when a home sits vacant for 30 days or more, the policy even if currently in effect and paid up will not pay out. So if you own rental property right now during the pandemic that you are letting sit vacant here in Kansas City Missouri you may not be covered. If a loved one moved into a nursing home or passed away, and the home has been vacant for more than 30 days, it may not be covered. And if you are going to go on vacation and be gone for more than 30 days, it may not be covered.
So if you have a property that you know is going to be vacant for more than 30 days, you may want to talk to your agent to boost your coverage or purchase a different type of insurance that covers vacant dwellings.
Condo and Multifamily Property
Another instance we have come across several times is when an owner of a unit in a multifamily situation, like a condo, did not have proper coverage. In several of these cases, they were not insured properly and there was major catastrophic water damage that completely destroyed the unit on the inside. The homeowner didn’t have the funds to repair the unit and their insurance did not cover the repairs and the condo association would only cover the property from the walls out, so they had to sell.
If you own a unit like this, please consult with your insurance provider to make sure you have the proper coverage to cover not only theft and damage of belongings, but to rebuild your unit should you have major damage from fire, fire hoses, or even the sprinkler system going off accidentally.
The best time to ask the question, “Will My Insurance Cover the Damage on My Home” is when you are buying that insurance. The second best time is right now, BEFORE any damage or claim. Don’t wait until disaster strikes to find out like several of the home sellers we have worked with to find out that the answer is “NO!”
If you have had a disaster strike and found the answer is no, and you are considering selling the home, we would be happy to take a look and make you an offer. Give us a call or submit on our sell your home form.
Learn more about homeowners insurance from the Insurance Information Institute, PolicyGenius, and Business Insider. Also, take a look at the Incredible Ice Palace article that shows how one homeowner found out his insurance would not cover his water damage.
