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Home Insurance Exclusions....Watch Out!

There are millions of options when it comes to getting home owner's insurance, getting what you need for home insurance protection is the ultimate goal. It is important to understand that certain events are not always covered in your home insurance coverage. These items that aren't in your policy are referred to as "exclusions".

Some of the frequent home insurance exclusions can be categorized as external, environmental, and negligent tenancy. I will outline some common home insurance exclusions and what to look for when applying for a home insurance quote.

The most common external exclusions involve damage resulting from world events like war, nuclear catastrophes, contamination, and terrorism (since the September 11th attacks) is also included as an external exclusion in many home insurance policies.

Environmental exclusions usually include major disasters like tornadoes, earthquakes, hurricanes and almost always floods. These exclusions are even more prominent in areas that are more susceptible. Many Hurricane Katrina victims experienced this first hand.

Negligent tenancy could better be called leaving your home unattended. In most cases, if your home is left vacant for more the 30 days than this exclusion kicks in since there is nobody there to prevent damage from occurring.

Almost all insurance companies will have many of the exclusions mentioned, but you need to ask specifically which exclusions are included in your policy before you are caught off guard with something that you was excluded from your coverage.

These exclusions vary from company to company and change often. You should know exactly what you're paying for when it comes to your home insurance coverage.

Don't get "blown away" by an insurance exclusion when your policy doesn't cover you from tornado damage.

What is Home Insurance?

Home Insurance is something that can protect a family in the event of a serious incident. Although it seems difficult to find a comprehensive home insurance policy, the truth is many companies offer home insurance at an affordable rate.

If you are a first time shopper for home insurance you need to know that home insurance coverage comes in a variety of ways. Home insurance coverage may range from the extremely narrow side where only sited risks are covered to a blanket of coverage, otherwise known as open risks coverage.

Looking for the best insurance can be a difficult task, but it is extremely important to research all available tools to find the best coverage available. Home insurance coverage normally includes coverage polices varying from broad to definite in scope. Remember some insurance policies do not cover some natural disasters or certain types of personal injury.

An individual's home is more valuable than his or her belongings; therefore the focus for any home insurance policy needs to start with the physical structure. Remember that the location and current condition of a home plays a big role in determining the premiums that you will pay for a home insurance policy. By way of example, homes located in suburban, high-crime neighborhoods represent a greater risk for insurance companies, which mean higher insurance costs when compared with a quiet residential area. Crime plays a major factor in the cost of home insurance.

New home buyers need to get specific details on what happens if injury is caused to an individual due to poor construction or structural concerns. Some of the liability may be on the builder if injury occurs on new homes.

Make sure you check your policy to ensure that you are covered from all natural disasters, including floods and earthquake. Important coverage details are often excluded from policies. The best way to prevent this mistake is to focus on all possibilities is the best option for the home owner.

Homeowner's Insurance

Homeowners don't often have the option whether or not they buy home insurance, as it is mandatory by most lenders. What should you do when you actually own your home? Should you decline homeowner's insurance? I would suggest that you keep your coverage even after you own your home. You need to remember that homeowner's policies cover the house and all items inside.

It is important that your home insurance coverage includes negligent behavior, as long as the insurance company does not prove intent. An example of this would be if you intentionally light a fire in your kitchen to burn down your house and collect the insurance. After the fire department inspector determines that you intentionally started the fire, your insurance will not cover a cent.

There are many types of home insurance policies; the most popular is often called a traditional homeowner's policy. A good example of this is renter's insurance. I recommend that you always include high enough coverage to cover 100% of the home and the contents inside. This type of coverage is referred to as "Guaranteed Replacement coverage, meaning that the insurance company will cover the cost of replacing the lost items as if everything were new, without factoring in any depreciation that may have occurred.

You should get a home appraisal so the actual value is recorded by a professional. This will help during the claims process. During the home appraisal, make sure any special features (adding a new storage room or refinishing the kitchen) of the home are recorded. Having an inventory of all items within your home is also important. Be sure to not any expensive pieces of jewelry and check your policy to ensure that its covered. Many policies exclude jewelry in its coverage so you may have to get a separate policy to cover those excluded items. It's best to include serial numbers, purchase price and if a picture of your valuables to ensure your claims process goes smoothly.