Flooding is not generally covered by a standard home insurance policy. After the floods in Alberta, many people now realize this. There are still a lot of people that are not aware of the types of situations that their home insurance will not cover. We will go over a few of the property exclusions that are part of standard homeowners insurance:
If there is a structure that is utilized for business purposes, this is not included in standard home insurance coverage. In fact, any claim related to a business on your property could be denied. Remember this if you're running any kind of business out of your home, if it's a day care, catering company, or a mail-order business for examples.
Standard policies do not cover pets, whether they are injured or are the victim of a theft. But if there are injuries caused by your pet, this will be included. If you have a dog that causes injury to someone by biting them and a lawsuit is the result, you will be covered by your personal liability insurance. There are some dog breeds that would require additional coverage, so speak to your insurance provider about your dog's breed.
If you have neglected to properly protect your property in order to minimize further damage, this will not be included in your coverage. What does this mean? If you do not call the fire department when there is a fire on your property, your losses will not be covered. In a case where a tree falls on your home and damages the roof and you fail to protect your belongings from the rain damage, you will not be covered.
Power outages are also not covered by the policy, for example, if your frozen food is ruined because of a power outage, this will not be covered.
Damage due to rising waters, more commonly called floods are also not covered by standard policies. Water backup is also not included in typical coverage. Examples of this are when your basement's sump pump malfunctions or if your drain or sewer backs up. Unless you've purchased specific coverage for this, you could face thousands in damage.
The property of a boarder in your home, or someone who is leasing space will not be covered by your homeowners insurance policy. The renter or boarder will need separate coverage in the event your home is affected by fire or another covered peril and their possessions are damaged.
Earthquakes are also not covered by standard insurance policies. For people living in a zone that has a high chance of earthquakes, special insurance for this needs to be purchased. Standard homeowners insurance does not cover mudslides or sinkholes.
Ask your agent about the exclusions in each policy you consider. When you have this knowledge, you will know how to prepare.
If there is a structure that is utilized for business purposes, this is not included in standard home insurance coverage. In fact, any claim related to a business on your property could be denied. Remember this if you're running any kind of business out of your home, if it's a day care, catering company, or a mail-order business for examples.
Standard policies do not cover pets, whether they are injured or are the victim of a theft. But if there are injuries caused by your pet, this will be included. If you have a dog that causes injury to someone by biting them and a lawsuit is the result, you will be covered by your personal liability insurance. There are some dog breeds that would require additional coverage, so speak to your insurance provider about your dog's breed.
If you have neglected to properly protect your property in order to minimize further damage, this will not be included in your coverage. What does this mean? If you do not call the fire department when there is a fire on your property, your losses will not be covered. In a case where a tree falls on your home and damages the roof and you fail to protect your belongings from the rain damage, you will not be covered.
Power outages are also not covered by the policy, for example, if your frozen food is ruined because of a power outage, this will not be covered.
Damage due to rising waters, more commonly called floods are also not covered by standard policies. Water backup is also not included in typical coverage. Examples of this are when your basement's sump pump malfunctions or if your drain or sewer backs up. Unless you've purchased specific coverage for this, you could face thousands in damage.
The property of a boarder in your home, or someone who is leasing space will not be covered by your homeowners insurance policy. The renter or boarder will need separate coverage in the event your home is affected by fire or another covered peril and their possessions are damaged.
Earthquakes are also not covered by standard insurance policies. For people living in a zone that has a high chance of earthquakes, special insurance for this needs to be purchased. Standard homeowners insurance does not cover mudslides or sinkholes.
Ask your agent about the exclusions in each policy you consider. When you have this knowledge, you will know how to prepare.
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