What Your Homeowners Insurance Probably Doesn’t Cover

Your home is your fortress, safeguarding your family and all your belongings. While it’s prudent to protect it with homeowners insurance, it’s also wise to understand your policy’s limits and exclusions. Depending on your circumstances, you may need specialized and supplemental coverage to get full protection for your home, possessions, and assets. 

Understanding your homeowners insurance coverage is crucial — knowing what it does and doesn’t protect. At Dickstein Associates Agency, our experienced team will thoroughly evaluate your unique situation and insurance requirements. We’ll clearly explain the scope of your homeowners insurance coverage, highlighting what is and is not covered. Your location, home value, and risk factors determine whether your current policy provides adequate protection.

Standard Homeowners Insurance Coverage

Homeowners insurance provides a critical safety net for homeowners, offering financial protection in case of unexpected property damage or loss. It encompasses the following key benefits:

• Dwelling: Protects the structure of the home against covered risks.
• Personal property: Covers belongings, furniture, and appliances.
• Liability: Protects against lawsuits for property damage or bodily injury to others.
• Additional living expenses: Pays for living expenses if a covered loss makes your home uninhabitable.
• Detached structures: Covers outbuildings such as sheds or garages.

By providing comprehensive protection against unforeseen events, homeowners insurance delivers financial security and peace of mind.

However, your policy inevitably has limitations.

Exclusions and Limitations

Homeowners insurance covers many common perils, but it still has limitations. It typically does not cover the following:

• Natural disasters: Standard policies rarely cover damage from floods, earthquakes, or hurricanes.
• Wear and tear: It excludes gradual damage due to time and use.
• Valuable Items: Pricey items like jewelry, guns, collectibles, or art may have coverage limits.
• Home-based businesses: Many policies exclude business activities at home.
• Intentional acts and criminal activities: Coverage does not extend to losses resulting from deliberate actions or unlawful behavior. 
• Specific pet types: Coverage may not include injuries caused by specific dog breeds or exotic pets.
• Renovations: Coverage limitations may apply during extensive home updates.

Understanding your insurance policy’s coverage details is advisable to avoid unexpected out-of-pocket expenses. You should also consider enhancing your coverage and limiting your liability exposure with umbrella insurance for more comprehensive protection.

Umbrella Insurance Coverage

Umbrella insurance significantly broadens your liability protection.

• Increased liability limits: Umbrella insurance provides additional financial security when your standard liability coverage reaches its limits.
• Broader coverage for personal liability: It extends protection to incidents not covered by traditional homeowners insurance, safeguarding you against broader liability risks.
• Coverage for personal injury claims: Protection against charges like libel, slander, or false arrest.
• High-value item protection: This insurance provides broader coverage for expensive possessions, ensuring their protection against unforeseen events.

The added protection of umbrella insurance can be a lifesaver, ensuring your home and hard-earned assets remain safeguarded.

Cover the Gaps

Knowledge is vital when choosing the right insurance for your home. Understanding what your homeowners insurance covers and, more crucially, what it excludes can save you from stress and financial burden. For those with substantial assets, umbrella insurance is the optimal way to bridge the protection deficit, offering broader, more comprehensive coverage.

We recognize the significance of providing a protective shield for your home. At Dickstein Associates Agency, we work closely with homeowners to tailor policies to their specific requirements using a variety of customizable dwelling coverages. We’ll review your options for acquiring the most appropriate homeowners insurance at competitive rates to fit your needs. Contact us today!