Think back on the last time you played the Game of Life. You drove your six-seater car around the board, getting married and buying a house when the squares and cards prompted you to do so. Did you land on any squares like “house flooded” or “tree falls through roof”? If you didn’t have homeowners insurance at that moment, you owed thousands to the Life bank.
In today’s version of the Game of Life, a homeowners insurance policy covers anything that happens to your house. But in older versions, you had to buy a separate fire insurance policy if you wanted fire protection for your imaginary house. Those older rules resemble real-life insurance more closely than today’s game: most homeowners insurance policies have gaps.
When you invest in homeowners insurance, it’s vital for you to know what your policy covers-and what it doesn’t. You may decide to pay for supplemental insurance that protects your house against additional types of damage. Check out our list of coverage options to consider.
Mold
Many homeowners policies offer at least some coverage for mold damage. However, those policies usually have limits. For example, you might only receive funds for up to $10,000 worth of damage. You would have to pay for the rest of the restoration out of pocket.
Dozens of conditions can cause mold to grow inside your home, including:
- Leaky or broken pipes
- Poor ventilation
- Leaky roofing
- Flooding
- Humidity
Mold often grows in walls, under cabinets, or in other places you don’t see often. Consequently, mold growth sometimes causes extensive damage before you know it’s there. Insurance agents usually offer extended coverage options for homeowners who want additional protection from mold damage.
Sewer Backup
Sewage pipes in many parts of the country are close to 100 years old. The older these systems become, the more likely they are to back up. Heavy rain or tree roots that grew into pipes are other common causes of sewer backups.
When a sewage backup occurs at your home, the resulting damage could affect the walls, flooring, and electrical wiring. It might even ruin your furniture. Plus, you’ll likely have to move out while you wait for restoration and construction crews to return your home to a livable condition.
Most homeowners policies offer little to no protection against this problem. For instance, the provider might pay for you to stay in a hotel while repairs take place but not pay for the repairs themselves. You can purchase supplemental insurance that takes care of these expenses if they come up. The premium is usually affordable, between $40 and $100 per year.
Floods
Many homeowners insurance policies include language that promises coverage for “water damage,” but exactly what “water damage” means varies from policy to policy. For example, some policies with water damage clauses won’t cover property damage caused by muddy water.
Clarify with your insurance agent whether your policy protects you from huge bills after a house flood. This step carries particular importance if you live in an area with frequent flooding or heavy rain, but flood insurance is a smart idea regardless of where you live. Repairing your house after a flood can cost tens of thousands of dollars, but you probably won’t pay more than a few hundred for the policy.
Trampolines and Tree Houses
Do your kids or grandkids love playing on these backyard extras? If they do, take precautions to make sure everyone avoids injury while having fun. Chances are your homeowners policy offers no coverage for accidents on these toys.
Insurance companies don’t like the high risk of injury associated with trampolines and tree houses. Thousands of people head to the emergency room every year after falling off these structures. If you have them on your property, your provider may automatically raise your premium or exclude coverage for trampoline or tree house injuries.
Some insurances companies do provide separate coverage for trampolines or tree houses. Ask an insurance broker to shop several providers for a reasonable policy you can add to your basic homeowners insurance.
Dogs
If you own a dog, you consider him or her a member of your family. But insurance companies tend to see dogs as liabilities because when they bite, the victim might need expensive medical care. If your dog is a breed that your provider considers high risk, they may refuse to include dog-bite liability in your policy.
Ask your insurance agent if your dog qualifies as a high-risk breed with your provider. If it does, you may qualify for coverage after you take mandated precautions, such as putting your dog through obedience school. However, some companies refuse outright to insure some dog breeds, so you may have to switch providers or purchase a separate policy.
Talk to your insurance agent about what your homeowners policy covers. Discuss which types of supplemental coverage are suited for you so you don’t face unexpected bills after an accident or natural disaster.
