Home Insurance Overview
While most commonly referred to as home or homeowners insurance, the insurance that protects your private residence and your personal belongings is sometimes called hazard insurance or storm damage insurance. All of the aforementioned terms are used interchangeably in this guide.
This article offers residential property owners an introduction to the types of insurance that protect your private residence and personal property from storm damage.
What Does Homeowners Insurance Mean?
Homewoners insurance is referred to as multiple-line insurance in that it covers both property and liability.
Liability coverage offers protection from lawsuits from visitors that are injured on your property. While the liability portion of your policy is an important aspect of homeowners insurance, this article focuses on the property coverage as it relates to helping you repair your home and replace your personal items after a severe storm.
The property coverage included in your Homewoners insurance protects you from damage to your home, your personal property contained within your home, loss of the use of your home after a storm (living expenses), as well as other structures on your land and additional personal possessions.
Common Types of Home Insurance Policies
The Insurance Services Office (ISO) is a private company founded in 1971. Among other services, the ISO has created standard insurance policy forms that are used by most insurance companies. The following is a list of seven common policy forms in use today.
Protect Yourself from These Common Coverage Exclusions
While most home insurance policies cover a wide variety of potential hazards and damage, almost all of them have gaps in coverage leaving you at risk for total loss.
By reviewing the list below you will become familiar with types of coverage excluded from most home insurance policies. Once you have a basic understanding of what is not included, you can have an intelligent conversation with your insurance broker about purchasing additional coverage for your specific situation.
- Water damage from floods, sewer back-ups, or water that seeps through the foundation. Read more about obtaining flood insurance and protecting yourself from the most common form of storm related damage.
- Earthquakes or land movement from shockwaves, sinkholes, landslides and mudflows
- Ordinance or law, such as demolition or construction required to bring your house up to code
- Power failure
- Neglect or failure to take reasonable measures to mitigate damage after a storm
- War, including undeclared war and civil war
- Nuclear explosions
- Any intentional act by you with the purpose of causing damage or loss
- Governmental action, such as the destruction, confiscation or seizure of covered property by any governmental or public authority
- Damage to or loss of property from faulty zoning, poor repair or workmanship, faulty construction materials, or inadequate maintenance