Home insurance policies can be confusing, and sometimes there’s coverage for things you might not expect. Similarly, sometimes there can be exclusions you don’t expect. Let’s go over a few of the nuances of standard home and auto policies.
On the home side
You probably know that a standard home insurance policy protects you if your home is damaged by wind, fire and hail. But did you know that a standard policy usually also protects you from the following:
Planes and automobiles
Yep, you might not worry too much about an airplane crashing into your house. But if one does, you’re likely covered for the damage it causes. Your policy typically would pay for damage to the house and other structures on your policy and your possessions – clothes, electronics, furniture, and so on. It also probably would pay for additional living expenses if you’re displaced while repairs are being made.
It’s probably more likely that a car could crash into your house, particularly if you live on a sharp curve. And yes, you’re also covered for this.
Meteors
You read that right. You’re covered in case a meteor or other space debris hits your house.
Riot
Again, the prospect of a riot in your subdivision in the ‘burbs might not seem that likely. But whether one breaks out there or in a city setting, you’re covered.
Explosion
Chances are, there’s never been an explosion at your house. But you can rest assured that if there is one, it’s typically covered by home insurance. Again, you could receive compensation, up to your policy limits, for damage to the structure of your house, other buildings on the property and your possessions and for additional living expenses if you’re displaced for repairs.
What’s not covered
Hold on a minute! There’s one situation in which damage from an explosion definitely wouldn’t be covered. Your house is not protected if there’s damage from an act of war. And terrorism? There’s no definitive answer on that – providers often consider terrorism as an act of war; the courts haven’t given a final answer.
You probably know that floods are not covered by standard home insurance. You might not know that the following aren’t covered: Structures used for business, personal aircraft kept on your property, losses caused by power failure, water backup, the property of any boarders who aren’t related to you, earthquakes, or sinkholes.
Don’t get taken for a ride
The situation is a bit more complicated – imagine that – for auto insurance. There’s really no such thing as a standard policy – states have different requirements and policies can be heavily customized. But for the purposes of this post, let’s say a typical policy would include personal and property liability coverage, uninsured/underinsured motorist protection, medical payments coverage, and collision and comprehensive protection.
You’re probably covered, up to your policy limits, for the following:
- Hit and run. This is where your uninsured/underinsured motorist coverage comes in.
- You can use comprehensive coverage for this – but you have to meet your deductible first.
- Flooding and earthquakes. Again, you can use your comprehensive coverage, and there’s a deductible.
- Missiles and explosion. Comprehensive coverage and deductible.
- Hitting an animal. You can see where this is going.
We’ll say it again. Comprehensive coverage is not required by your state, but your lender might mandate that you have it. Otherwise, it is optional.
What’s not covered
You’re not covered if you intentionally cause a wreck, or if you’re transporting people for a fee, or for Acts of War. War – uh – what is it good for? Absolutely nothing, when it comes to home and auto insurance.
We hope you’ll leave this post knowing more about your policy. Talk to an agent if you have further questions about coverage.
Photo credit for photo image: Flickr user/Mike Lewinski
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