What Does My Homeowners Insurance Policy Cover ?

One of our friends recently purchased a home, and 3 days after closing, the second floor toilet flooded the house!  This brought tons of questions about who was going to help her get everything in her home in Raleigh fixed!  Because she’s a friend – as she was waiting to hear back from her insurance agent… she called our office understandably panicked, and asked, “Ugh, Guys…. Exactly what does my Homeowners Insurance Policy cover?”

This is a very important question for home buyers and homeowners as what you may think is covered may not be, and what you may think you’re getting back could be far less or even worse…nothing.

Check your policy and review it with your insurance agent, certain things that you might expect to be covered by homeowners insurance are not. For example a burst pipe that leads to water damage is often covered, but a leaking pipe that drips over time might not be covered. This is considered a problem that should have been found with regular maintenance and the insurance company policy requires you to maintain the property.

Here is an example of what can happen when a leak is left unattended…

Photo courtesy of Floriopics.com

Water can do untold damage to a home as we have all seen with recent hurricanes and floods and if you live in a flood prone area you will need to have flood insurance. But a simple leak if left unattended can wreak havoc in a home not only in the immediate aftermath but in the long term effects with possible mold.

Never leave a drip unattended as the consequences can be devastating, water destroys, electronics, carpet, wood, clothes,drywall and the cost to repair and replace everything is not something you want to have to pay for.

Typically a homeowners insurance policy covers fire, lightning, windstorm, theft, riot and vandalism, what is typically not covered is floods and earthquakes…and anything EXCLUDED on the policy, this is why it is so important to read the policy. Personal liability coverage protects you if someone gets hurt on your property.

Most insurance companies now have clauses for items such as trampolines where they will either charge you more or exclude any injuries that are caused by them or cancel your policy. Owning certain breeds of dogs can now affect your policy.

Homeowners Insurance is only one of many costs you will have when you purchase a home.  Typically, even if a Seller is paying your closing cost, they are not paying for your Homeowner’s Insurance Policy or your portion of the taxes.  The Seller paid closing costs

If you are buying a home and getting a mortgage you have to purchase homeowners insurance and you have to maintain insurance on the home for the life of the loan. Insurance does cover personal property but the amount of coverage may be limited, it is recommended that you take a video of the interior of your home and itemize your more expensive possessions from time to time.

If you are considering a home purchase in Raleigh, Cary, Apex (or anywhere in the Triangle Area) we encourage you to work with a professional home buying team!  We know what Insurance agents are going to really listen to you, and help create a policy that covers you from disasters – and one that works within your budget.  Your home is an Investment, and as such, you will want to Insure it properly!  Call Raleigh Cary Realty, our agents will answer all of your Homebuying Questions!