For homeowners or prospective first-time buyers, it’s essential to understand homeowners’ insurance for asset protection and peace of mind. 

This type of insurance safeguards your belongings, home’s interior and exterior in the event of a fire, smoke damage, theft, vandalism or other natural disaster, such as lightning, wind or hail. Homeowners’ insurance can also cover liability; living expenses, if you are displaced due to a covered incident; as well as medical payments in the event someone is injured in your home, among other aspects of protection. 

WHAT TO EXPECT

The first step toward obtaining homeowners’ insurance is to gather quotes from different providers; this will give you a general idea of the cost and what is covered. Be sure to check with your auto insurance provider, as they are usually able to bundle packages together for better rates. Remember, homeowners should always aim for the policy with the best coverage at the lowest premiums. 

When getting quotes, be prepared to share information about your credit history and home, such as its location, age and condition, security and safety features, square footage, listing price and more. 

Many homeowners’ policies come with an estimation of the total loss coverage for a property, based on public data and the information you supply. However, if homeowners disagree with this assessment or would like more coverage, they can request it. Newer homes will usually require a higher premium as they would be more costly to rebuild if destroyed. 

Furthermore, you only need homeowner’s insurance to replace the house, not the land itself. The cost of land accounts for a large percentage of property value; don’t be surprised if a $400,000 property requires $150,000 worth of coverage. Your insurer should be able to guide you through the probable replacement cost. 

WHAT’S NOT COVERED

Homeowners’ insurance doesn’t cover everything, however, such as flooding. If a property is located in a flood-prone area, homeowners will need to purchase flood insurance, a special policy that is federally backed by the National Flood Insurance Program and available for both homeowners and businesses. Similar to other types of insurance, the higher the deductible, the lower your premium. 

According to the Indiana Department of Insurance, “some companies offer a Hydrostatic Pressure Endorsement to insure your property for the increased exertion of water on the foundation of your structure, a condition frequently accompanying the rising waters of a flood, however, most of these endorsements only cover collapse of the structure due to hydrostatic pressure and do not insure for damage, other than building collapse, due to hydrostatic pressure accompanying the flood.”

Earthquakes, landslides and sinkholes aren’t covered in most cases, though such policies do exist. 

In the case of dog bites, a homeowners’ policy could cover the incident to the limits of your liability coverage, which varies. If the cost exceeds the coverage limit, you would be responsible for the difference. Additionally, some insurers may not offer coverage if the dog’s breed is historically aggressive.

Items such as jewelry, art, musical gear and collectibles may require additional protection, such as a personal property floater policy. Whether or not they may be covered by flood insurance depends on the policy. 

Other scenarios not usually covered by homeowners’ insurance include damage from lack of maintenance — think pests and mold. If the cause of mold is not from flooding, you might be eligible to file a claim to cover the damage. Your homeowner’s insurance policy includes coverage for some water damage. It all depends on the specific cause by which mold is growing and if it is covered under your policy as a covered peril. To learn more about how mold may be covered by homeowners’ insurance, read our past blog post.

CHECK FOR ELIGIBILITY 

Military service members and their families may also be eligible for discounts on homeowners’ insurance. Qualifications vary by company, but some offer a percentage off of premiums or special rates for active-duty personnel and veterans. 

Some companies also offer discounts for membership in certain organizations, alumni statuses and features that make a home safer, such as an alarm system, or being located in a gated community. Check with your insurer to see if any of these homeowners’ insurance discounts apply to you. 

Leliaert staff members understand the complexities of homeowners’ insurance and can help guide you toward the appropriate policy and peace of mind. Contact us today with your homeowners’ insurance needs.

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Mold is covert, slow-growing, and problematic to you and your family’s health. In this article, learn everything you need to know about whether your homeowner’s insurance covers mold damage. Find out which types of mold damage are covered in your homeowner’s insurance, how to successfully get your mold claim approved, and how to avoid mold damage in the future. 

Does Homeowners Insurance Cover Mold? Understanding ‘Covered Perils’

Does homeowners insurance cover mold? Some carriers exclude mold or have a small limit to cover from a claim where the cause of the mold is a covered claim.The question that matters to your homeowner’s insurance carrier is, what is the cause of the mold?

The most common thing to cause mold is lingering moisture from water damage. And, the most common water damage is flooding. The mold that occurs as a result of flooding is covered under a flood insurance policy, separate from your homeowner’s insurance.

Most homeowner’s insurance policies do not guarantee coverage for mold damage. Homeowners insurance covers anything that qualifies as Covered Perils. Covered perils refer to the assets that are ‘covered’ in the ‘perilous’ event that they succumb to damage.

Types of Mold Damage: Is it Covered by Homeowners Insurance?

If the cause of mold is not from flooding, you might be eligible to file a claim to cover the damage. Your homeowner’s insurance policy includes coverage for some water damage. It all depends on the specific cause by which mold is growing, and if it is covered under your policy as a Covered Peril. 

In general, your home appliances are covered in the event of a malfunction that results in water damage. This is also true in the case of water damage caused by a malfunctioning hot water heater. The distinguishing factor is, whether water damage is the result of a Covered Peril, or whether water is the initial cause of damage leading to mold.

So, if a hose within your dishwasher malfunctions resulting in water and mold damage to your home, homeowners insurance covers, both the initial, and resulting damage. On the other hand, if you allow water to accumulate on the bathroom floor when you get out of the shower, and mold starts to grow, it is not covered as resulting damage from a Covered Peril. 

Mold from Flooding or Acts of Nature

Water is insidious, penetrating, and relentless. Water seeps into the wood, corrodes metal, and rots fabric. Unlike other elements, water is difficult to eradicate once it finds a way into your home, and can cause long-term, irreversible damage to structural elements. 

So, insurance companies are careful when it comes to covering the cost of damages initiated by water. Flood insurance exists to provide specific coverage for damage resulting from floods and acts of nature. For instance, if a strong thunderstorm causes storm drains to back-up, and water seeps under your doorway causing damage to your home, you better hope you have flood insurance.

Since your homeowner’s insurance does not cover the initial damage which results in mold, it does not cover the mold damage, either. The cost of coverage for damage sustained by flooding is relative to the risk factor for the area in question. Flood-prone areas in the United States have higher premiums on flood insurance, compared to areas of higher elevation.

If, however, your roof is torn-off by a tornado, causing water damage from resulting rain exposure, you are more likely to be able to file a claim to your homeowner’s insurance policy carrier. In this case, the resulting mold might be covered as part of the damage sustained by a Covered Peril.  

Mold from Homeowners Negligence

If water damage and mold resulting from negligence on the part of the homeowner, you will have a hard time getting your claim approved. The initial damage that causes mold is commonly a result of homeowner error or negligence. For example, neglecting to repair a leaking pipe under your sink is not a valid claim for compensation under your homeowner’s policy. 

If your insurance carrier can prove that you knowingly could have prevented the mold damage by ensuring the upkeep of your home, it is hard to get your claim approved. The best option is to be preemptive about mold, by using a dehumidifier to limit residual moisture in the home and keeping a practice of regular cleaning habits around the house.

You can improve your odds of getting a claim approved to cover mold damages if you can prove that it is not a result of homeowner negligence. Still asking, does homeowners insurance cover mold in my case? Talk to a homeowner’s insurance expert today and see if you are covered.

The post Does Homeowners Insurance Cover Mold? What You Need to Know 2020 appeared first on Leliaert Insurance Agency.