Limitations of Home InsuranceLimitations of Home Insurance Homeowners insurance is a must. In the event of an emergency or natural disaster, homeowners insurance provides safe and reliable financial security, protecting the value of your home and possessions. What Home Insurance CoversMost property insurance policy’s have the same offerings - to cover your house, including surrounding property, your family and your possessions, while also protecting you against personal liability. Coverage does vary, however, depending on the individual insurance company. It is essential to check your own policy to ensure you are covered for whatever may arise, particularly if you live in an area where natural disaster is more likely to occur. There is nothing worse than realizing the limitations of homeowners insurance after disaster strikes. In fact, most companies to do not include earthquake and flood coverage in a standard insurance policy. However, most insurance companies will post an earthquake exclusion clause in the policy to make homeowners in earthquake-prone areas aware of the need for additional coverage. If you live in an area where there tends to be seasonal or occasional drastic flooding, make sure you purchase additional flood insurance as well. Personal possessions are insured, however, there may be limitations on the amount valuable possessions are worth when making a claim. Most insurance companies claim these limitations are placed on highly valuable personal property. This is to ensure that insurance premiums stay at an affordable rate. What Home Insurance Generally Does Not CoverWhat might be limited? Well, money for starters. Most insurance companies will let the customer claim only $200, including cash, coin collections, platinum, gold and silver. Jewellery and other luxury items such as furs, precious and semi-precious stones can be claimed at a value of no more than $1,000 total loss as a result of theft. In case of theft of silverware, gold and pewter ware and fine china, the homeowner can claim up to $2,500. In case of theft of guns, the customer can claim up to $2,000 total loss. Trailers, watercrafts, electronics and personal businesses can also have limitations placed on them through a homeowner’s insurance policy. The best bet is to know what you are insured for and cover all of your bases. Get Your Free Home Insurance Quotes NowUSInsuranceOnline provides Home Insurance quotes of all types so our members can compare prices and save money. |