Dealing with Homeowners Policy Exclusions
Property exclusions exist in Sections A and B of a homeowners insurance policy. The following are some of the most important exclusions to be aware of:
Collapse - If a home collapses, there is no coverage provided unless the cause is included in the list of additional coverage inclusions section.
Flood - This is one of the most important exclusions to be aware of. In the eyes of insurers, there is a large difference between water damage and flooding. It's important to keep in mind that flooding hasn't been covered in homeowners policies since the 1960s. In 1968, the government implemented the National Flood Insurance Program. Even those who don't reside in flood zones should have this valuable coverage. Heavy rains and hurricanes often cause flooding in areas that usually don't see it.
Freezing - If heating, air conditioning or plumbing systems freeze, the damage is excluded from a homeowners policy if the dwelling has been vacant or is in the process of construction.
Homes Under Construction - When thieves steal property or materials from an unfinished home, the loss is not covered by a homeowners policy.
Retaining Walls, Foundations & Nonbuilding Structures - Damage to swimming pools, fences, docks and similar structures from thawing, freezing, weight or pressure of water is not covered by a homeowners policy.
Mold, Wet Rot & Fungus - Damage caused by these issues is not covered if it's due to a sump pump, sump or similar equipment. It also isn't covered if it's from a gutter, roof drain, downspout or equipment that is similar.
Risks Of Direct Physical Loss - This is the section of a homeowners policy that lists any other exclusions. Some examples of common exclusions are smog, rodents, birds, wear and tear or owned animals. It's important to read it carefully to fully understand it. If there are any questions or concerns, contact an agent to clarify the terms.
Concurrent Causation Exclusions - Homeowners policies explain how loss is handled if a specific cause is covered but another is not.
Malicious Mischief & Vandalism - If the dwelling has been vacant for a period exceeding 30 consecutive days prior to the damage or loss, this exclusion exists.
Coverage sections A, B, C and D have several exclusions. Loss from any events that take place as a result of law enforcement on the property are excluded. However, endorsements are available to be added to a policy to provide this coverage. Damage or loss from earthquakes or landslides is also excluded. Power failure, neglect, water damage and war are also causes of damage that are excluded.
Sections E and F of a homeowners policy provide liability coverage. However, there are several exclusions in those sections to be aware of. Intentional injuries to other people are excluded. The business of an insured person is not covered by a homeowners policy. Premises held for rent, professional services, locations not listed on the homeowners policy, watercraft and motor vehicles are also not covered under a homeowners policy. Liability damages from war, owned aircraft, sexual molestation, abuse, communicable diseases and controlled substances are not covered. Coverage for home day care is very limited under the property section of the policy but is excluded under the liability section.
Although these exclusions exist, there are many add-on options available from insurers to provide coverage for such areas. There are also separate insurance policies for some exclusion. Flooding is one example. However, there are some exclusions that simply aren't covered under insurance policies or additional coverage purchases. Harm to others from controlled substances is an example. The best way to avoid such problems is to take the proper preventative measures to avoid being in a position to suffer loss from any exclusions. The first step to getting coverage for exclusions is to speak with agent. An agent will be able to provide valuable information about extra coverage options and a list of ways to avoid suffering loss from issues that aren't covered by insurance.
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