What Your Insurance Policy Might Not Cover

Most people who purchase a homeowner insurance policy simply assume it covers almost everything.

But few things are further from the truth.

Learn how to protect your property and financial future by understanding the top three things your homeowner policy might not cover.

Big-Ticket Items. Read the fine print in your homeowner insurance policy. Chances are there will be strict limits on the coverage amount for big-ticket items like jewelry, electronics and collectibles. Ask your insurance agent about riders or addenda to your existing homeowner policy that will provide additional insurance coverage for expensive items.

Flood Damage. Homeowners are often surprised to learn that their policy specifically excludes flood damage. Even worse, many make the mistake of thinking they don’t need flood insurance because they live on “dry land” or areas not prone to flooding. Unfortunately, flood insurance can also provide valuable protection against more than just rising waters. For example, it might provide protection against other water-related losses, including those from a hurricane or even burst pipes during an earthquake. In fact, water-related damages are one of the leading causes of insurance claims. So if you’re a homeowner, don’t forget to ask your agent how to purchase flood insurance for your property.

Business Property. Whether you work from home full time or simply skip the office every so often, don’t assume your business property is covered. Computers and other equipment used at home are not typically covered by your standard homeowner policy. Employees should verify that their business provides full insurance for company-owned property used at home or in transit. Small-business owners should clearly differentiate business property from personal property while maintaining sufficient coverage for both. Ask your agent about business property riders or addenda that provide additional coverage for dual-use items or business property used off-site or at home.