Buying homeowners insurance protects you from various mishaps, including fire and flood damage. The coverage can also cover your liability exposures, such as replacing lost belongings. But homeowners insurance does not cover everything that can go wrong. It does not cover structural damage from natural disasters, such as earthquakes. Here are some things to consider when looking for homeowners insurance. This article aims to answer your questions about what is covered and what is not.
Many standard home insurance policies do not cover intentional acts by homeowners. If you are caught setting fire to your home, you’ll have no coverage for it. Other excluded items include bird or rodent damage, rot, and mold. A few policies also exclude coverage for general wear and tear, as well as damage caused by smoke from industrial or agricultural operations. Whether your home is built well or not depends on the type of insurance coverage you purchase.
If your house is built with older wiring, your homeowners insurance may not cover it. The cost of upgrading wiring may exceed the coverage limit. In such cases, you’ll need to pay the difference between the old wiring and the new one. Building codes and laws change frequently. An endorsement that addresses these changes will save you money. However, some things may be excluded from coverage by your insurance policy, such as high-tech electrical wiring.