Understanding what’s not covered on your insurance policy lets you know what other insurance coverage you might need. Here are some of the BIG Exclusions.
Section I Exclusions – A Soap Box
What! Not everything’s covered?
Not everything is covered. That’s the bottom-line. Something’s we can find coverage for, while for other things, we are just out of luck. That said, regardless of whether you buy a special policy or not, you need to understand the exclusions, in order to truly understand your policy. Here are some of the most important exclusions found in section one… Why do I say it that way? Because there is a whole other section, just for exclusions. I know, not easy.
- Land - insurance doesn’t cover land. Why? ‘Cause you can’t hurt, dirt. This is an important point when you get into the idea of how to value your home.
- Ordinance or Law – So, if your local elected officials decide that every new building has to have a statue of Big Bird, but old buildings don’t, and your rental property burns to the ground and you have to rebuild… Guess what? You have to get that statue of Big Bird. Guess what else? The insurance company won’t pay for that. While no one requires Big Bird statues, there are other things, like sprinkler systems, where this happens all the time.
- Earth Movement – Now, depending on the state, you may or may not find earthquake coverage available. Even when earthquake coverage is available, things like, landslide, mine cave-ins, mudflow, sinkholes, etc. may not be covered. Can you get this coverage? You can in some states with a separate policy. Learn more about our catastrophic coverage policy here.
- Water – We all know Flood, tidal waves, etc. are not covered. What about overflows from drains, sump-pumps or sewers? Nope. Water is a tough one.
- Intentional Loss - For investors, this is big. It means there is no coverage for damage your tenants cause…. Which means it’s important to screen your tenants, so as to hopefully avoid the tenant that steals the copper and skates.
There are more, but these are the most important ones, in MY opinion. So, read the policy and find out what else might be important.
To get an incredible quote these coverage sections start our online quote form. To talk to a licensed agent about this coverage call us at 1-877-784-6787.
This coverage explanation is for illustration purposes only and is general in nature. Coverage explained here may not apply to your policy, State, company, or situation. For more information about how your policy would respond in the event of a loss, please refer to the terms and conditions and declarations page of your policy.