What Coverage Will You Have in a Typical Home Insurance Policy?

There are three areas of coverage in a typical home insurance policy that confuse many homeowners; some do not realize these things are protected at all while others think that they have more protection than they really do.

1. At the top of the list is water damage which many homeowners confuse with flood damage. Water damage coverage in a typical home insurance policy is related to damage from rain that leaks into the home from a hole in the roof if the hole was caused by a hurricane or another disaster that is covered by the policy. For flood damage coverage a homeowner must have flood insurance.
2. When trees are struck by lightning and fall on your home most insurance companies will cover the fees to have them removed. Some insurance companies will also pay for trees that have fallen on your property but have not damaged your home or any other insured structure on your property. The typical home insurance policy will not pay for the replacement of shrubbery or trees damaged in a storm.
3. If you own a home that is more than 10 years old you need to discuss your insurance coverage requirements in terms of compliance with current building codes because they play a major role in processing claims for damages. The building codes of your area require homes and structures to be built to a set of minimum standards, particularly in locations where frequent natural disasters such as hurricanes take place. If you live in this type of area and your property suffers damage, if it is not in compliance with the building codes, you may have to repair the damaged parts of the structure to meet the compliance standards. This can require more costly materials, a change in design or in the case of flood areas where structures must meet federal codes this could mean that the structure must be raised above flood level.

The typical home insurance policy may not cover all of these costs; in some cases the costs can be offset partially or an endorsement is provided to pay for a certain amount of the costs. If you are unsure of the building codes that apply to your home insurance policy, it is best to review your policy with your insurance agent before disaster strikes and you are unable to handle the financial burden that may result from damage to your home.