Ark-La-Tex Home Insurance Basics: What is Not Covered?
Homeowners insurance offers crucial financial protection, but understanding its exclusions proves equally important. Here at Watley Insurance Group, we talk to people here in the Ark-La-Tex a lot. We talk about the cost of insurance and coverage for their personal property. Homeowners insurance proves a type of property insurance that covers damage to your home and its contents. It also provides coverage for your liability for injuries or property damage that you cause to others. So, what common things have covered by homeowners insurance?
Let’s take a closer look.
Flooding
Most home insurance policies typically exclude coverage for flooding. You can consider flood damage a separate type of insurance coverage, not included in standard homeowners insurance policies.
The reason for this exclusion is that floods can cause extensive damage to properties and possessions. This makes it a high-risk event for insurance companies. Additionally, floods can occur in various regions.
To protect against flood-related losses, homeowners usually need to purchase a separate flood insurance policy. This purchase happens through the National Flood Insurance Program (NFIP) or a private insurance company. These policies typically offer coverage for damage to the structure of the home, as well as personal belongings. It’s important to note that there may be certain limitations and coverage exclusions under flood insurance policies as well.
Earthquakes
Earthquakes are typically not covered by standard home insurance policies. This exclusion exists because earthquakes are considered to be a high-risk natural disaster. Naturally, it can cause extensive damage to a property. Unlike other perils such as fire or theft, earthquakes are unpredictable and can occur in various regions around the world.
Due to the potential for significant damage, costs to insure against earthquakes are typically higher than standard home insurance. Homeowners who live in areas prone to earthquakes may need to seek separate earthquake insurance coverage. Or, they can purchase additional endorsements to ensure they are adequately protected.
It is important for homeowners to understand the limitations on coverage when it comes to earthquakes and to take appropriate measures to mitigate risks. This may include reinforcing the structure of the home, securing heavy furniture or appliances, or even considering relocation to a region with a lower risk of earthquakes.
Landslides
Landslides are a common natural disaster that can cause substantial damage to homes and properties. However, they are typically not covered by standard home insurance policies.
Insurance companies exclude landslides from coverage due to several reasons. Firstly, landslides are considered a geological event rather than a sudden and accidental occurrence. Home insurance policies typically cover sudden and unexpected events like fires or storms, but not gradual events like landslides.
Furthermore, landslides are often associated with poor land conditions, such as unstable soil or steep slopes. Insurance companies argue that homeowners should take preventive measures, like proper land survey and stabilization, to minimize the risk of landslides before purchasing a property.
In some cases, homeowners may be able to purchase additional coverage specifically for landslides, but this is usually offered as a separate policy or an endorsement to the existing policy. This additional coverage may come at an extra cost and may have specific limitations on the types of landslides covered.
War
War is typically not covered by home insurance policies due to the inherent risks and uncertainties associated with armed conflicts. Insurance is designed to protect against unforeseen events and perils that are accidental in nature. However, war is a deliberate act of violence and aggression between nations or factions, making it an excluded coverage under most standard home insurance policies.
War-related damages can be extensive and catastrophic, including property destruction, looting, vandalism, and even complete loss of homes. These damages are difficult to predict and quantify, making it extremely challenging for insurance companies to offer coverage for such unpredictable events.
Furthermore, the costs associated with war-related damages are often beyond the financial capabilities of insurance providers. Insurers are not equipped to handle the immense magnitude of losses that can arise from wars, which may include the destruction of entire cities or regions.
As a result, homeowners are advised to seek specialized insurance policies such as political violence insurance or war risk insurance to protect their properties during times of conflict. These policies are specifically designed to cover damages caused by war, terrorism, civil unrest, and other politically motivated acts.
Neglect
Neglect is typically not covered by home insurance policies due to several reasons. Home insurance is designed to protect homeowners from unexpected events and damages that are beyond their control. Neglect, on the other hand, refers to the failure to properly maintain or take care of the property, resulting in avoidable damages or losses.
Insurance policies are not intended to cover preventable damage caused by negligence. It is the homeowner’s responsibility to keep their property well-maintained and in good condition. Neglecting maintenance tasks such as regular inspections, repairs, and addressing potential hazards can lead to serious issues such as water damage, mold growth, or structural deterioration, which are not typically covered by home insurance.
Furthermore, neglect is considered a homeowner’s individual responsibility and is not considered a covered peril under standard home insurance policies. Insurance is designed to protect against sudden and unforeseen events, such as fire, theft, or storm damage. Neglect falls outside of these perils and is not an insurable risk.
Intentional Loss
Intentional loss, in the context of home insurance, refers to any damage or destruction that is deliberately caused by the policyholder. These intentional acts can include arson, vandalism, or theft committed by the homeowner or any individual covered under the insurance policy.
Most home insurance policies exclude coverage for intentional loss. This is primarily because insurance is designed to protect against unforeseen accidents or events that are beyond the control of the policyholder. Intentional acts are considered deliberate actions, and insurance companies view them as preventable and therefore not insurable.
Insurance companies have this exclusion in place to prevent fraudulent claims. Without this provision, policyholders could potentially cause intentional damage to their property and then file a claim to receive compensation for the resulting loss. This would lead to increased premiums for all policyholders.
Wear and Tear
Wear and tear is often not covered by home insurance policies due to the nature of the damages it entails. Home insurance primarily aims to protect homeowners from sudden and unforeseen events such as fires, storms, or thefts. These policies are not designed to provide coverage for damages that occur as a result of normal use, aging, or deterioration.
Wear and tear is considered a common occurrence in any home. It includes damages that happen gradually over time, such as fading paint, worn-out carpets, or cracked tiles. Since these are expected outcomes of regular use, insurance companies do not typically include coverage for them in standard home insurance policies.
Insurers formulate policies based on the concept of insurable risks, which are events that are accidental, sudden, and unexpected. Wear and tear do not meet these criteria, as they are predictable and inherent to the aging process of a property.
Mold
Mold is a common issue that many homeowners have to deal with, but unfortunately, it is typically not covered by home insurance policies. It is considered a maintenance issue rather than a sudden and accidental event, which is why it is not included in standard coverage.
Home insurance policies are designed to protect against certain perils such as fire, theft, and vandalism. Mold, on the other hand, is seen as a gradual and preventable problem that arises from issues like water leaks, high humidity, or poor ventilation. Since insurance companies expect homeowners to properly maintain their properties and prevent mold growth, it is considered the responsibility of the homeowner to address these issues.
However, it’s important to note that some insurance policies may offer limited coverage for mold under specific circumstances, such as when it is a direct result of a covered peril like a burst pipe. It’s always best to carefully review your policy and speak with your insurance provider about any potential coverage for mold or mold-related damage.
Conclusion
Homeowners insurance is an important financial protection for homeowners. You should understand what is not covered under a homeowners insurance policy. By understanding the exclusions in your policy, you can help to protect yourself from financial loss in the event of a covered loss.
We also know the cost of homeowners insurance proves important to those looking to stay on budget without sacrificing coverage.
If you’re a homeowner in the Ark-La-Tex area looking for insurance options, Watley Insurance Group can help. We aim to find you the right homeowners insurance company and the right comprehensive coverage.
We love to serve our neighbors in Shreveport, Bossier City, Benton, Barksdale Air Force Base, Haughton, Keithville, and Blanchard.
As an independent insurance agency, Watley Insurance Group offers a wide range of insurance options. We get these options from multiple carriers, allowing you to find the coverage that’s right for you.
Watley Insurance Group has the experience and knowledge to help you find the right policy at the right price.
Let’s get you covered! Learn more about how we can help you protect your home and your peace of mind.
