Five things not covered by Homeowners insurance

4/21/2017 (Permalink)

Do you know what is covered under your homeowners policy?

Many homeowners in North Carolina assume that their homeowners insurance covers them from any and all damages. This false sense of security can lead them into situations where their coverage is insufficient or nonexistent.  I have listed five areas where many homeowners assume they are covered but are not.  Have a conversation with you agent to address any areas where you may be overexposed. 

Mold: Your standard homeowner’s policy in the state of North Carolina only covers mold up to $5000.00 in damages.  Some states have different policy limits for mold or exclude coverage all together.  The best way to prevent mold is to be proactive in stopping any water intrusion.  If you have a leak, get it dried out professionally as soon as possible.  Call SERVPRO of Davie and Yadkin Counties for help with your water issues at 336 677 1415.

Sewer Backup: Sewer backups are not covered by your standard homeowner’s policy.  Make sure you have a sewage backup endorsement of a sufficient amount to cover any potential losses.  $5000.00 in sewage backup coverage will be gone in a hurry if your entire finished basement is flooded with two inches of sewage.  

Earthquake: You standard homeowner’s policy will not cover damage from earth movement.  Surprisingly, the East coast of the United States has a number of active fault lines.  Make sure you understand your risk from an earthquake and have a conversation with your agent about appropriate coverage. 

Flood: Water on the ground from rain or a storm/hurricane event coming into your home is not covered.  Flood insurance can be purchased separately through FEMA and the National Flood Insurance Program . 

Damage from Construction Work: If you are remodeling your home, a standard homeowner’s policy won’t cover any damage done to your home by a contractor.  When you hire a contractor, make sure they carry sufficient liability insurance.