Understanding What is Covered

July 3, 2024

When you suffer damage to (or the loss of) your home or its contents, you expect your insurance company to come to the rescue, and most do.

Still, it’s a good idea to review your policy with your insurance advisor and find out what’s covered and what isn’t. For example, if you have a flood in your laundry room, you don’t want to discover then that the damage is not covered.

Some events that often require additional coverage, or may not be covered at all are:

  • Overland water (interior home damage from water outside the home)
  • Sewer backup
  • Poor maintenance (e.g., you could be denied if you didn’t maintain your foundation or repair a leaky pipe)
  • Valuables beyond a specific amount

Also, check liability limits. Ask your advisor to recommend an appropriate level. Finally, ensure you know exactly how much your home is insured for. Are you covered for the full replacement cost? Are you comfortable with that coverage, or would you rather only insure for the actual cash value?

Knowing you have the right insurance policy will give you peace of mind and is an important part of enjoying your home.