Advice offered by Marc Hebert, a founder of The Harbor Group Inc. The company is a registered investment advisor. If you have any questions about finance or if you’d like to suggest a future topic, email [email protected] home is probably your biggest investment and protecting it with the proper insurance coverage is extremely important. Now is the time to review your policy – don’t wait until you have a potential claim.There are a few things about your coverage that might surprise you. For instance, consider whether you are covered for the following:MiceIt is hard to find a house that hasn’t had to deal with them. If they chew up your insulation, for example, it isn’t covered.Ceiling damageThe person doing repair work just damaged your ceiling. This is likely covered – it doesn’t matter who damaged the property. Damage to furnitureThe same repairman also damaged your furniture. Is this covered? In most instances, no – damage to furniture would only be covered if caused by a known peril, such as fire. Water damageLiving by the river is wonderful. Unfortunately, heavy rains just caused it to flood into your basement. Now you have water damage. Is this covered? No – you would need to have flood insurance, which is a separate policy. The same applies to earthquakes. Soil erosionIn certain areas of the country, the soil is eroding away. If your house slides down a newly formed cliff, it won’t be covered unless you have the appropriate separate coverage.Building code updatesYou decide you need to update your house to meet current building codes. Is the extra expense covered? This is a maybe. You might have an endorsement that applies specifically to this instance.Sewer backupYour sewer backed up and the water damage is significant. Once again, this is a maybe. A specific endorsement might apply. Vehicle strikes homeA truck missed the corner but not your home. In this instance, you are covered. Damage from vehicles is pretty standard. Tree is toppledThe beautiful old oak tree in front of your property just came down in the last wind storm. In most instances, the damage is covered. Fire damageIn addition to the wind, there was lightning. It just struck and set fire to your house. Is this covered? Fire damage is standard coverage. Smoke damageDuring the fire, your wardrobe was damaged by the heavy smoke. The answer is yes here, too – this will fall under the personal property coverage. Refrigerated food spoils during power outageWhat if the power goes out and all of your food in the refrigerator is ruined? Can you recover the cost? The answer is yes under most policies, subject to limits. Stolen paintingThe valuable painting you treasured and displayed proudly has been stolen. Is this covered? This is another maybe. Specific types of valuables (such as art, antiques, and jewelry) require special endorsements. Vandalism while home is vacantYou’re in the process of moving and haven’t actually lived in the house for a couple of months. Vandals took over and the repairs are extensive. Is this covered? Unfortunately, it isn’t. Most policies limit the time the house can be vacant to 30 days. Work-from-home property theftIn today’s age, there are many people who work at home. In order to do this, there is usually a work computer involved. What if this gets stolen? Is this covered? The answer is no. Only laptops used for personal purposes have the potential to be covered. Fuel tank leak damage If your home heating fuel tank leaks, most homeowner’s policies will not cover the damage. The environmental cleanup will be your responsibility. However, you may be able to get an endorsement for this type of coverage. –These are just a few examples of instances in which your insurance may or may not cover the damage. Keep in mind that we have only discussed property damage. Another area to consider is how your liability coverage may apply in specific situations. To make sure you are properly insured, we suggest discussing your individual needs and your existing policy with your insurance agent. Don’t wait until you need the coverage, either. It may simply be too late.
Advice offered by Marc Hebert, a founder of The Harbor Group Inc. The company is a registered investment advisor. If you have any questions about finance or if you’d like to suggest a future topic, email [email protected].
Your home is probably your biggest investment and protecting it with the proper insurance coverage is extremely important. Now is the time to review your policy – don’t wait until you have a potential claim.
There are a few things about your coverage that might surprise you. For instance, consider whether you are covered for the following:
Mice
It is hard to find a house that hasn’t had to deal with them. If they chew up your insulation, for example, it isn’t covered.
Ceiling damage
The person doing repair work just damaged your ceiling. This is likely covered – it doesn’t matter who damaged the property.
Damage to furniture
The same repairman also damaged your furniture. Is this covered? In most instances, no – damage to furniture would only be covered if caused by a known peril, such as fire.
Water damage
Living by the river is wonderful. Unfortunately, heavy rains just caused it to flood into your basement. Now you have water damage. Is this covered? No – you would need to have flood insurance, which is a separate policy. The same applies to earthquakes.
Soil erosion
In certain areas of the country, the soil is eroding away. If your house slides down a newly formed cliff, it won’t be covered unless you have the appropriate separate coverage.
Building code updates
You decide you need to update your house to meet current building codes. Is the extra expense covered? This is a maybe. You might have an endorsement that applies specifically to this instance.
Sewer backup
Your sewer backed up and the water damage is significant. Once again, this is a maybe. A specific endorsement might apply.
Vehicle strikes home
A truck missed the corner but not your home. In this instance, you are covered. Damage from vehicles is pretty standard.
Tree is toppled
The beautiful old oak tree in front of your property just came down in the last wind storm. In most instances, the damage is covered.
Fire damage
In addition to the wind, there was lightning. It just struck and set fire to your house. Is this covered? Fire damage is standard coverage.
Smoke damage
During the fire, your wardrobe was damaged by the heavy smoke. The answer is yes here, too – this will fall under the personal property coverage.
Refrigerated food spoils during power outage
What if the power goes out and all of your food in the refrigerator is ruined? Can you recover the cost? The answer is yes under most policies, subject to limits.
Stolen painting
The valuable painting you treasured and displayed proudly has been stolen. Is this covered? This is another maybe. Specific types of valuables (such as art, antiques, and jewelry) require special endorsements.
Vandalism while home is vacant
You’re in the process of moving and haven’t actually lived in the house for a couple of months. Vandals took over and the repairs are extensive. Is this covered? Unfortunately, it isn’t. Most policies limit the time the house can be vacant to 30 days.
Work-from-home property theft
In today’s age, there are many people who work at home. In order to do this, there is usually a work computer involved. What if this gets stolen? Is this covered? The answer is no. Only laptops used for personal purposes have the potential to be covered.
Fuel tank leak damage
If your home heating fuel tank leaks, most homeowner’s policies will not cover the damage. The environmental cleanup will be your responsibility. However, you may be able to get an endorsement for this type of coverage.
—
These are just a few examples of instances in which your insurance may or may not cover the damage. Keep in mind that we have only discussed property damage. Another area to consider is how your liability coverage may apply in specific situations. To make sure you are properly insured, we suggest discussing your individual needs and your existing policy with your insurance agent. Don’t wait until you need the coverage, either. It may simply be too late.
