Knowing what your home insurance policy covers can save you from a lot of confusion and expenses in case a disaster were to occur that wasn't accounted for in your coverage plan. HO-3 is known as the standard homeowner's insurance policy and offers the most protection out of all the policies available. Although this policy covers your home from damage caused by multiple perils, there are a few important exclusions that may be necessary to add on to your coverage plan.
1. Hurricanes and Floods
Although damage caused by a strong rain storm would be covered by your insurance plan, more severe natural disasters such as hurricanes and floods are not included in your coverage plan. If you live in on the coast or in an area where these disasters strike often, you will want to consider adding on a separate coverage plan to have the protection you need in case of an emergency.
2. Home Maintenance
From bursting pipes to termite infestations, every home encounters maintenance problems that often occur despite the time and energy you put into generally maintaining your home. Even if these maintenance issues result in serious damage to your home and costly repairs are necessary, your insurance policy will not cover the costs. However, damage such as food spoiling as a result of a power outage would be covered by a standard insurance policy.
3. Earthquakes and Sinkholes
Similar to hurricanes and floods, natural disasters such as earthquakes and sinkholes are also not covered by a standard insurance policy. Although earth movements are beyond your control, the policy typically does not cover damage that may result from these natural disasters. Residents in areas which are especially prone to these disasters can purchase endorsement insurance at an additional cost.
Although your standard insurance policy will cover damages to a certain extent, there are a few categories where the limitation is easy to exceed. For example, a standard insurance policy will only cover $1,000 worth of stolen valuables such as jewelry, gold, silverware, and so forth. Many homes require additional coverage in these limited areas and should consult the insurance company on additional coverage policies available to ensure their protection as fully as possible.
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