Going Back to the Basics of Insurance Claims

For most of us, buying a home is a huge milestone and one of the biggest investments we will ever make. Purchasing the right insurance coverage for your home is paramount, and you need to make sure you understand what is covered and is not covered under your homeowner's policy. If you ever need to file a claim, you will be glad you took the time to learn about your policy and its coverages. 

What is Covered? 

In the insurance world, the word peril means something that caused damage and loss to your property. There are 16 perils commonly covered in most or all policies:  

• Fire 
• Lightning 
• Wind and Hail 
• Explosions 
• Riots 
• Damage Caused by Aircraft and Vehicles 
• Smoke 
• Volcanic Eruption 
• Vandalism 
• Theft 
• Falling Objects 
• Weight of Snow, Ice, or Sleet (Ice Dams) 
• Sudden and Accidental Discharges/Overflows of Water 
• Sudden Tearing and Cracking of Appliances, Freezes, and Power Surges

In coastal areas, hurricanes are covered, but usually come with high deductibles. However, paying the $5K or percentage deductible is much more affordable than having no insurance and sustaining $50K of damages.

What is Not Covered and Why You Need It  

You may be thinking, there are other instances where I might need coverage. What if the sewer backs up into my home? What if water enters my home during a flood event? These occurrences are not typically covered under your homeowner's policy. 

All insurance carriers will allow a rider, or optional coverage feature for sewage back-ups. Flood insurance can be purchased through your agent and is run through the NFIP (National Flood Insurance Program). Flood insurance will cover up to $250,000 of damage to a home.  

Furthermore, there are private property options as well that you should discuss with your agent. If you have a mortgage and live in a flood zone, you are REQUIRED by your lender to purchase flood insurance. You and your agent can find something that works best for you and your needs. Homes with mortgages that have minimal risk and that are not located in flood zones are not required to purchase flood insurance.  

You should also know that a high percentage, or about 40% of flood claims come from outside the higher risk areas. It only takes 1 inch of water to cause over $30K worth of damage to your home. You must ask yourself, is the coverage worth the extra $600 premium a year? I would hope that answer is always a firm yes. 

Finally, if you have experienced a loss and plan to file an insurance claim, call Guarantee Restoration Services and let us help you through the claim process. Our Claims team of professionals is ready to help you get back to normal quickly and efficiently. We will negotiate with your insurance company on your behalf so that you can worry less and focus on getting your life back to normal.