When you buy a house, you want it to be a home. You want your family to be safe and comfortable in the home, so you house shop until you find the perfect home for your family. Once you’ve found your family home, you tack on a homeowners insurance policy and you start getting comfortable. Before you settle in, there are some things you may want to consider. A homeowners insurance policy covers many things, but it may not cover all of your needs.
Know What Your Policy Does and Does Not Cover
You should always read over any policy before you sign, but when reading your insurance policy don’t skip the Exclusions section. This section will let you know what is not covered. After reading this, you may decide to purchase other types of insurance to balance out your policy.
Flood Insurance
Floods are not generally covered under standard homeowner policies. This may not seem like a big deal if you don’t live near a body of water, but floods come in many forms. Every spring the April showers cause devastation all across the country. The rains saturate the ground and raise the water tables. Before long you have standing water, and then you have moving water causing flash floods in areas you may not expect it. If your new home is in a flood zone your mortgage company may require flood insurance, but if it’s not in a flood zone it’s often ignored.
My Story
I bought my new home in April 2010. I was told by my insurance agent that my home was on a 100 year flood plain and that flood insurance was not necessary. If you were watching the news that spring you know that the south was devastated by floods that year. On May 1st, just 24 days after I bought my home, I awoke to a nightmare. The entire ground floor of my new home was under water. I called my insurance company and was told that I was not covered and that I should have bought flood insurance. Even a 100 year flood plain is not a sure bet. Apparently we were on year 99 and 11 months.
Earthquake Insurance
Earthquakes are another disaster that are not generally covered under a normal policy. If you live near a major fault, it’s a no-brainer. However, earthquakes can strike just about anywhere. You have to weigh your risks. If the ground shakes and your house is damaged, your standard homeowners policy will not help you. The cost of the extra policy may be well worth the price.
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