From a burst pipe to a leak in the roof and an infestation in the attic, plenty of things can go wrong in your house. Do not wait to repair these because your home insurance policy does not cover them.
You will have to buy additional coverage to ensure you don’t end up with a high repair bill. Let’s look at the basics of a home insurance policy and what type to go for extra protection.
Perils Covered by Home Insurance
HO-1 Insurance is a standard home insurance policy that covers only the basics. However, HO-3 Insurance offers a little extra coverage for your house. The perils covered include:
- Lighting or fire
- Windstorm or hail
- Weight of ice, sleet, or snow
- Civil commotion or riot
- Damage from aircrafts
- Malicious mischief or vandalism
- Falling objects
- Accidental discharge of steam or water
- Volcanic eruption
Types of Home Insurance Coverage Options
- Actual Cash Value: As the name says, this coverage option gives you the amount of money your belongings are worth (not how much you bought them for) minus depreciation.
- Replacement Cost: This coverage option gives you the exact amount of money you bought your belongings in.
- Guaranteed Replacement Cost or Value: This comprehensive policy allows you to repair your house no matter how much it takes, even if the amount exceeds the policy limit.
Perils Not Covered by Home Insurance
- Earth movements such as earthquakes, mudslides, sinkholes, and shockwaves
- Water damage, such as water backing up in the sewers or drains
- The ordinance (Expenses related to demolishing, rebuilding, repairing, or renovating your house as instructed by the government)
- Power failure
- Nuclear hazard
- Wear and tear
- Intentional loss
- Smog, dry rot, and rust
- Water discharge causing damage to appliances
- Mechanical breakdown
- Roof leaks
- Damage to your property by animals
Why Home Insurance Does Not Cover Repairs
Insurance companies expect homeowners to take care of their property by keeping up with maintenance. This is why they don’t pay for exterminators, landscapers, and plumbers. However, this does not mean you cannot get coverage for them.
A few additional coverage options you should consider include:
- Product Warranty: Guarantees the quality of your appliances, such as AC, water heater, etc.
- Equipment Breakdown Coverage: This covers all home appliances that might break down due to improper installation or wear and tear.
- Water Backup Coverage: This coverage includes any type of water damage caused by a drain backup or overflow, sewer, or sump pump.
A home warranty covers all the above additional coverage. However, this policy does not come cheap. Its rate can go up to $900 yearly, on top of your standard home insurance policy.
Buying home insurance can be tricky. We recommend consulting an agent and discussing your needs so you don’t end up paying higher premiums.
Visit the Uptown Glass website to discuss home financing options. The company provides its services for homes and offices. They also offer glass repair, storefront glass installation, glass and glazing, and commercial glazing. To get in touch with them, call (972) 537-8069.