As a homeowner, recognizing the importance of homeowner's insurance is easy. What isn't always as easy is understanding what is and isn't covered under the policy. With the nuances of the risks that homeowners face, it's nearly impossible to address every possible risk factor when discussing your coverage. To help you gain a better understanding of your coverage, here are a few situations you may encounter and what options you might have.
Losses From Power Outages
If you find yourself facing any losses due to a power outage, you'll have to check the fine print of your policy to determine what coverage is available. For example, if your power outage resulted from lightning that struck the house, you will likely have some policy protections. You may have to pay the deductible, but your policy should cover the rest.
In the case of lightning damage that takes out a transformer or other location that's separate from your home, you're not likely to have coverage for it under your typical home policy. This is because homeowner's insurance only covers damage to the property or structure, not damage caused to external items.
Losses From Earthquakes, Volcanoes or Other Ground-Level Disasters
If you live in an area that's at risk of earthquake, you may need to talk with your insurance agent about the types of coverage that are available to you. In most situations, you have to buy separate coverage for your earthquake risk. Failure to buy the added policy protections may leave you responsible for any damage.
In the case of volcano eruption, your policy might extend some coverage. Most homeowner's insurance provides some benefit for damage caused by volcanic ash. Since it is fine enough to seep into many gaps, this is a common hazard of volcano proximity.
You'll want to verify with your insurance company what kinds of damage are covered, though, because some damage may not be included. For example, flooding caused by broken pipes due to volcano or earthquake may still not be covered unless you have flood insurance.
Home insurance can be a confusing, intimidating investment if you don't fully understand the terms of the policy. With the tips here, you can better understand what kind of coverage you might have available when faced with such unique claim issues. Whether you're facing shorted-out electronics from a power outage and surge or volcanic dust covering that's clogged air vents, your homeowner's insurance may provide some coverage to help you correct the problem. Talk with a company like G William Collier Agency for more information.