The Ins and Outs of Homeowners Insurance III: Exceptions and More
Written by Kristina Lee   

Step 4: Common Exceptions
Decide which common Homeowners insurance exceptions are ones that you need, or can get, riders for. While these items are sometimes sold on their own, they are often packaged together with a standard policy as riders for an additional fee. They cover additional dangers or items that are not covered under the standard plan. Consider a rider if you live in an area prone to one of these disasters not covered under your plan.
  • Earthquake Insurance - while earthquakes are typically not covered under a standard Homeowners policy, those living on the West Coast or in earthquake-prone zones should give this serious consideration, as earthquakes have the potential to be terrifyingly damaging.
     
  • Flood Insurance - like Earthquakes, floods are typically not covered under a standard Homeowners policy. Those living by rivers or large bodies of water in zones that are particularly prone to huge rainstorms, hurricanes, or tsunamis should consider this.
     
  • Wind Damage - this is covered in many policies, but not all. Read your policy or check with an agent to confirm its coverage and claims policies. Those in particularly windy areas with the potential for harm, such as tornado or wind storm areas, should consider adding a rider to cover wind damage, if it is not already.
     
  • Hurricane Insurance - remember Hurricane Katrina? It was in that disaster that many people learned that their standard Homeowners insurance would not cover hurricane damage. If you live in a hurricane prone area, consider this. 
     
  • Mold or Water Damage - Even the common pipe burst or water formation may not be covered under your insurance. Check with your agent for specifics as to what water damage is and isn't covered, then consider adding this rider.
     
  • Man made disasters: nuclear accidents, terrorism and war - insurance policies often leave these out. If you live near a nuclear plant, or in a high target area for terrorists, consider this rider.
     
  • Natural Disasters and "Acts of God" - Check with your insurer about coverage for different types of disasters. Know that the higher the probability of a disaster occurring in your area, the less likely that it will be covered.
     
  • Intentional Damage - This is an exclusion that cannot be covered. Arson is a common example.

Step 5: Find the Insurance Company & Policy
Based on what you have decided about your needs in steps 1-5, shop around and get quotes from multiple agents and companies. Use those quotes to negotiate with others, just as you would to buy a car. By doing this, you allow yourself to get the best coverage, at the best price.

A few prominent insurance companies include: Step 6: Review!
After you buy, read your insurance policy, and know exactly what is or isn't covered. Keep on top of your payments to ensure constant coverage, and be aware of any changes that are made to your policy.

Happy hunting!


Back to The Ins and Outs of Homeowners Insurance I: Policies and Coverage.
Back to The Ins and Outs of Homeowners Insurance II: Preparation.
Last Updated on Sunday, 26 December 2010 20:03