10 Expenses Your Home Insurance May Be Missing

Homeowners insurance can vary from plan to plan so it’s always best to take those extra few hours researching and knowing exactly what is in the plan you choose. You will only benefit later down the road when the “if I only would have known” response comes up during a catastrophe. Homeowners are often unaware of just how vulnerable they are during these incidents, and that’s because homeowners insurance doesn’t cover many unexpected costs, including, in many cases, damage related to earthquakes and flooding.

The following are 10 expenses that insurance doesn’t always cover, so look over your plan and prepare your home for the unexpected before it’s too late.

Flood Insurance Flooding

Private insurance rarely covers flooding, so homeowners who want that protection need to get it through the federal government’s National Flood Insurance Program, which is run by the Federal Emergency Management Agency. Many homeowners, though, mistakenly think that their insurance policy does cover flood damage.

Earthquakes

Just as with flooding, consumers who want earthquake coverage often need to take out an additional policy for it. Earthquake coverage is usually only an issue in areas that face a high risk of trembles, such along the San Andreas Fault.

Deductibles

According to the Consumer Federation of America, deductibles are going up by as much as 2 percent to 5 percent. That means homeowners shell out more out-of-pocket cash before their insurance coverage kicks in.

Simultaneous events

Because of the technical term known as “anti-concurrent causation,” if two events happen at once, and one of those events, such as flooding, is not covered by insurance, then the policy might not cover damage from either event. That means flooding and wind damage that happen together could end up being costly for a homeowner.

Post-traumatic emotional support

Homeowners who experience traumatic events, such as fires or floods that completely devastate their homes, often find themselves in need of emotional support along with financial help. Insurance companies do not typically cover this type of service; instead, support groups and online forums can help.

Multiple bids

Insurance companies often recommend specific contractors to handle repairs, but a better strategy for homeowners may be to solicit competing bids, including from contractors not associated with the insurance company.

Lost wages

Filing for coverage after damage, as well as any necessary appeals, can be time-consuming work, and can take away from work time. Insurance doesn’t typically reimburse homeowners for lost wages.

A total rebuild

Most insurance policies have caps, which means they might not cover the cost of completely rebuilding a home after a fire, for example. Most homeowners, though, mistakenly think policies do cover that full cost of rebuilding.

Burst pipes

While insurance policies often cover damage caused by burst pipes, they typically don’t if the burst pipe is caused by homeowner negligence. That includes forgetting to drain pipes or leave the heat on during a winter vacation.

Required upgrades

Even if new laws require updates in undamaged parts of a home, insurance policies usually don’t cover those costs. Homeowners worried about this can take out extra “ordinance or law” coverage.

Remember, it is always best to look over all details to your insurance plan, knowing full-well what is covered and how much is coming out of your pocket when you encounter a catastrophe.

 

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Original article courtesy of realestate.msn.com.