Four Homeowners Insurance Mistakes You Don’t Know You’re Making (4 Video Links)

 

In 2022, Hurricane Ian was a category 4 storm that knocked out a quarter of Florida’s power and dropped 20 inches of rain on the central parts of the state, according to the Washington Post. Thousands of homeowners had damage to their homes, or lost homes completely due to storm damage.

We all have to manage personal finance risks, including market risk, stock price volatility, personal spending habits, and increasing investment costs  . It’s just as important, however, to have proper insurance coverage, including homeowners insurance coverage. Preventing a financial loss is just as important as producing investment gains.

Damage to your home can be devastating. Even if you have insurance coverage, the process of recovering your valuables, filing a claim, and possibly having to move can be traumatic. (Some close friends of mine had a house fire on Christmas Day of 2014. Fortunately, the damage was limited and no one was hurt).

Homeowners Insurance Coverage Explained

You can’t eliminate the risk of a house fire or weather-related damage, but you can make sure you understand your coverage. What does homeowners insurance not cover? Bankrate explains 4 situations that are not typically covered under a standard homeowners insurance policy:

• Flooding: This situation may surprise you, since flooding is fairly common. Most people think that flooding is covered in a homeowners policy, but damage due to flooding is not included in most homeowners policy. Fortunately, the federal government advertises flood insurance coverage options through the FloodSmart.gov site.

• Mold: According to the Centers for Disease Control and Prevention, some people experience breathing problems due to mold. Your homeowners insurance policy will typically offer limited coverage for mold- or exclude coverage completely.

More great content on accounting, personal finance, and humor/ short stories. Join Conference Room.

• Sewer Lines: Many cities are not properly maintaining sewer lines, and these lines are at risk of backing up, due to the aging infrastructure. The lines are designed to handle both storm water and raw sewage. A sewer line backup can damage your home’s structure (floors, walls, electrical systems), and the backup can also damage furniture.

• Renters Insurance: A final point for people who rent property. Your landlord’s homeowner’s insurance on rented property does not cover anything inside the structure. To cover your personal property, ask an insurance agent about a renters insurance policy.

To ensure that you have coverage for these issues, you can add an endorsement to your homeowners policy. Your insurance premiums will be more expensive, but you’ll have coverage.

Your home is likely your biggest investment. Use these tips to have some peace of mind about your home or rented property. Discuss the homeowners insurance coverage types with a licensed insurance agent.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website) https://www.accountingaccidentally.com/