Below are some of these homeowner insurance nuances:
Earthquakes are not covered under standard policies. If you live in an area where earthquakes are common, earthquake insurance is a must, if you do not purchase earthquake insurance and your house is damaged…than it is your FAULT…bad joke I know…
If you live next to a volcano, than you are in better shape than if you lived on or near a fault line. Damage caused by volcanic ash is typically covered under most policies.
Make sure to see if you have flood insurance! You do not want your house to look like the ark in the new Noah movie and not be covered if you are in an area that has flooded before or is prone to flooding. Check your policy, the 100 year flood happens every year somewhere.
If your home is swallowed by a sinkhole, you will not be covered under a standard policy. That can really suck…again a bad joke…
The old saying goes that lightning never strikes the same place twice, but if it did hit your house twice, you would be covered. Your AC unit is even covered if it is struck by lightning. You would still have to pay your deductible though.
However, if lightning struck down a transformer or knocked a tree onto the power lines in your neighborhood, you would not be covered for the food spoiling in your fridge from a power loss. You can purchase additional insurance to cover the food in your fridge or freezer from power loss.
Another big homeowner insurance nuance with power loss is sump pump coverage. If your sump pump does not run because of a power loss and your basement floods, you will not be covered unless you have sump pump coverage. It is a good idea to purchase sump pump coverage, make sure to check your policy! This can cause thousands of dollars of damage to your home if your sump pump doesn’t kick in.
If you live near an airport than this applies to you the most. If an airplane were to crash into your home, you will be covered under standard policies. Hopefully no one would be home if this were to happen.
However, if you own an aircraft and keep it at your property you will not be covered if a tree falls on it, if it gets set on fire, if it is vandalized, or any other damage is done to the aircraft. I am sure you can afford to repair it though because I do not know too many poor people with airplanes.
If a satellite, satellite debris, or a meteor were to crash into your home from outer space, you will be covered. This especially applies to you if you live in Roswell.
If your home is vandalized or set on fire from a riot caused by a Justin Bieber concert, you will be covered under your standard policy under peril.
If your house explodes from a gas leak, you will likely be covered under your standard insurance. However, explosions resulting from war are excluded from standard policies. Luckily, Canadians are too nice to start a war.
Insurance is a must if you have a mortgage on your home. In fact, your lender will purchase insurance for you if you do not pay your premium or cancel your policy (they will bill you at an inflated price if they have to purchase your insurance). You just have to understand some of the basic homeowner insurance nuances to make sure you are covered in certain situations. Over insured is better than under insured. Many add-ons to your policy are only a few cents a day different than standard policies.
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