Expenses Insurance Does Not Cover

Expenses Insurance Does Not Cover

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Expenses Insurance Does Not Cover

Buying a home is expensive, and there are always the unexpected costs associated with the purchase of a home. That is precisely why a home insurance policy is so important for every homeowner. After purchase, it is important to evaluate your insurance policy because not all damages are always covered; particularly an earthquake or flood.


It is uncommon for a standard private insurance policy to cover flooding contrary to popular belief that flood damage is included, therefore, any homeowner who desires that kind of coverage would need to seek it through the federal government’s National Flood insurance Program, ran by The Federal Emergency Management Agency.


Similar to consumers perspective on flooding, many people believe that earthquake damage in included in their typical policy. A homeowner needs to request an addition to cover earthquake damage; the good news is that this is only an issue in areas which faces high risks of trembles.

The Consumer Federation of America states that deductibles are rising by 2% - 5%. What this means to the homeowner is that you will be required to pay more out-of-pocket regardless, before your insurance actually covers the damage that has occurred.

Events That Occur Simultaneously

There is a term which insurance companies use, “anti-concurrent causation”. This is defined as two events that happen at once where one event is not covered by the insurance; as a result, it is possible that you might not be covered from either event. For example, there is a hurricane and your home is damaged by wind and flood, however you do not have flood insurance. You can potentially face paying for all the repairs yourself.

Multiple Bids
Most insurance companies have a list of contractors which they specifically work with to make repairs for claims. A smart strategy for any homeowner filing a claim is to solicit competing bids with contractors in their area who are not associated with their insurance company to try and find the lowest cost. This may save in the long run.

A Complete Loss

It is likely that your insurance policy has a cap, which means there is a number that they stop covering at and deny anything which exceeds. If your home is completely lost in a fire, they may night cover the full cost of rebuilding. Be sure and look at your current policy’s cap and compare that to your appraised value to ensure that you will not be stuck with paying the difference.

Are you considering a move in the near future?The Nate Robinson Home Selling Team is here to help you before, during, and after the process. Call my office at 760-566-7600, visit us at 2383 Camino Vida Roble, Suite J in Carlsbad, or send me an email at natecares4u@gmail.com.

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Phone: 631-774-6374
Dated: May 27th 2016
Views: 782
About Nathan: An entrepreneur and a relentless innovator of the real estate industry, Nate Robinson is the creator...

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