Five Things your Property Insurance may not Cover

When you buy a home, property insurance is a necessary added cost that should not be overlooked even if it isn’t compulsory. Property insurance is something that every home owner should have to protect themselves from theft, damage or any other unexpected incident that may occur. We can’t predict whether our home will be broken into, a flood will damage your property or fire will set. It’s important to take out insurance to avoid high costs when disaster does strike.

Property insurance differs from insurance company to company. Each company has their own criteria for those wanting to be covered and assess the risk according to each individual case. It’s important to do your research before deciding on the property insurance company you go with and ask the right questions. Remember to read the fine print because there are some things that your property insurance may not cover.

1 – When your home gets infested by rats, cockroaches or mice, your property insurance is unlikely to cover you for any costs associated with exterminating them. Do the right thing with pest control, keeping clean and hygienic in order to avoid any unwanted infestations.

2 – While you’re policy may cover you in case of an earthquake, it may not cover you if your house slides down a cliff wall or sinks into the ground because it has been built above a mine of some sort. However, you may be able to buy extra insurance if you feel that it’s is necessary and you may at some point be at risk.

3 – War and terrorism damage is not usually covered under your property insurance policy. If you live in a high risk area where the probability of war or terrorism is increased, it might be in your best interest to find out if you can take out extra insurance that will cover war and terrorism.

4 – If you’re running a home business and you’re computer or home office furniture is damaged by flood, fire or theft your property insurance will not cover the replacement costs. You will need separate insurance for your home business, and also advise your insurance company that you are running a business from home.

5 – Flood damage is usually not covered under standard property insurance. If you feel you need flood insurance you will need to take it out separately. This may be able to be added as an optional coverage on top of your normal property insurance.

When taking out property insurance it’s important to read the fine print. Be aware of what is and what isn’t covered. If you want coverage ask your insurance agent how you can get covered.