Understanding one’s property insurance coverage is important to say the least. This is especially true when property owners must deal with an unthinkable disaster situation from a storm or fire. Sami Went, a licensed insurance agent from Rollins Insurance, is the source of today’s agent spotlight article that talks about what is commonly included in home insurance policies and more importantly what is often not included.
By Sami Went…
As insurance agents it’s our job to help advise a customer on coverage that may come into play on one of the worst days of their life. If you’re a Kentuckian you very well know about the recent tornado that moved across Western Kentucky on December 10th, 2021, causing catastrophic damage. At that time, I couldn’t help but think – were the people impacted properly covered? Unfortunately, many people don’t understand how their property insurance functions or what it will cover until they are in the midst of a loss.
Purchasing a homeowners insurance policy isn’t glamorous, but it is a big part of homeownership as you’re protecting one of your greatest assets. Severe wind, extreme temperatures, and heavy precipitation are all examples of something you may face as a homeowner. Therefore, it is important for you to understand what your policy DOES and DOES NOT cover…Do you know how your policy coverage will stack up? The following will outline what a basic home insurance policy does and does not cover.
The most common coverages included in a home insurance policy…
- Dwelling Coverage (The structure – A.K.A your home!)
- Personal Property Coverage (Your belongings)
- Other Structures Coverage (Detached garage, shed, pool, gazebo, etc.)
- Personal Liability Coverage – Will protect you in the event you face a lawsuit for property damage or bodily injury within your home.
- Additional Living Expenses or Loss of Use – Helps you to cover the expense of having to live outside of your home due to a covered loss.
Many homeowners do not consider disasters such as floods, tornadoes, and earthquakes when they are selecting their insurance policy. This is a big mistake as certain natural disasters are not covered under a normal policy and can prove to be quite costly. Therefore, it is essential that you work with your local agent to make the best decision for your home.
The most common hazards NOT covered by a home insurance policy…
- Flooding – Standard homeowners insurance does not cover flood damage to your home. If you live in a designated flood zone, it is imperative that you add a flood insurance policy to your existing insurance policy.
- Movement of Earth
- Maintenance Issues (A.K.A wear and tear)
Although certain items are not covered, there are additional coverages that may be added to a basic home insurance policy to provide greater protection. Listed below are just a few of the policy add-ons that homeowners should consider when purchasing insurance.
Optional coverages a homeowner should consider…
- Extended Dwelling Coverage – Provides an additional percentage of the dwelling coverage amount should repair or replacement exceed the original dwelling coverage amount.
- Earthquake Coverage – Provides protection for direct physical loss resulting from an earthquake.
- Sewer and Water Back-Up Coverage – Typically provides coverage for building and personal property when a loss occurs caused by water which backs up through a sewer, drain or sump pump.
- Buried Utilities or Service Line Coverage – Covered service lines may include exterior underground piping and wiring providing communications, drainage, electrical power, heating, waste disposal, and water.
Rollins Insurance is an independent, family-owned & managed insurance agency that has been in business since 2008. They offer unmatched pricing on insurance policies that provide the most coverage possible. Rollins Insurance is conveniently located in Florence, KY and specializes in needs-based insurance services. They represent a variety of A-rated insurance companies giving them access to the most competitive rate packages for their clients throughout Kentucky, Ohio, Indiana, and Tennessee.
“We find that most people are under-insured and over-paying when we meet them. We love what we do, and our primary business is Personal Auto, Homeowners, and Life insurance.”