September is National Disaster Preparedness Month. As it wraps up and we change seasons, more choppy weather is possible. Before any kind of natural disaster strikes and does damage, the typical homeowner is usually unsure about what their homeowner’s insurance policy covers. Let’s clear that up!
What’s Your Situation?
First, we must state a disclaimer. Everyone’s insurance coverage will be different depending on their situation. The point of this information is to get you familiar with what is usually covered and for you to check your individual coverage to make sure you are informed. Standard homeowners’ insurance policies typically include a lot of different disaster situations. Let’s go over a few typical homeowner’s policies and what they cover!
Dwelling & Personal Property Policies:
- HO – 1: This is the most basic of basic policies. It’s so limited that a lot of insurers no longer offer it. The typical perils covered are fire, lightning, windstorm, hail, explosion, civil commotion, aircraft damage, vehicle damage, smoke, vandalism, theft, and volcanic eruption.
- HO – 2: This coverage is basic, but broader than HO – 1. Perils typically covered include all from HO-1, plus falling object(s), weight of ice and snow, overflow of water from plumbing or appliance, frozen plumbing or appliances, and electrical discharge.
- HO – 3: This is the broadest coverage you can get. It includes all perils that are typical to homeowners’ insurance.
- HO – 8: If you have an older home, you might be given this as a good option to go with. It covers all the perils of HO-1, but reimbursement works differently. Instead of replacement costs, you are reimbursed for covered damage on an actual cash value basis. This means the damaged items are being covered based on their depreciated value.
What’s Not Typically Covered?
There are some situations that your typical homeowner’s policies will not cover and considerations for additional coverage will be necessary. Here are some disasters that are not covered:
- Earthquakes: Most traditional home insurance policies do not cover earthquake movements. You may wish to opt-in for Earthquake Insurance. Earthquake insurance coverage is available here in Ohio.
- Maintenance: Natural wear and tear from age and use are not covered by insurance. Other issues, such as infestations and mold, are in this category as well. The homeowner is considered responsible for those costs. If you are seeking coverage of this type, consider a home warranty.
- Sewer Backup: While some policies cover accidental discharge or overflow of water from appliances or in-home plumbing, backup from your sewer system is not one of them. They are not included in most flood insurance policies either. A home insurance rider may be necessary to add this coverage.
- Floods: Most homeowners’ policies do not cover flood damage – only flood insurance policies provide financial protection from flooding. With bodies of water throughout the state, such as the Great Miami and Ohio Rivers, Ohio is at heightened flood risk in the spring and summer months. It should be highly considered if you live in an area prone to this flooding.
We’ve only covered just the tip of the iceberg of coverage options for homeowners. There are also renters, condo, and vacation home policies that will defer in what is covered for various reasons.
Your Next Steps
After reading and understanding what typical policy coverage exists, we urge you to get familiar with your policy. Dig it out and make sure you know what category you fall under. If you get stuck and don’t understand something, don’t hesitate to call your insurance agent. That is what they are there for!
After you clearly understand what is covered, you should consider creating an inventory list. By having that list, you will expedite the insurance claims process. You might also discover some items that could warrant additional coverage.
Bottom Line
At Greg Fay Insurance, we are not tied to one specific company. We can tailor a plan to you using several different products that suit you. Simply put, the Greg Fay Insurance Agency offers more homeowner insurance options for you! Do you have an insurance claim? Contact your carrier right away!
