I have been selling home insurance policies for over 27 years and not one of those years go by that someone submits a claim then learns , for the first time, that their insurance policy doesn’t cover everything. Insurance policies are contracts that do exactly what is written… and not what you think it should.
There are big “holes” in every insurance policy that you should be aware of! Take a look at this list of “Personal Property”, if you have these items, and you are thinking that the insurance policy is un-limited…THINK AGAIN!
Each item below has limited coverage in the event of a covered loss. (Some items are not covered at all.)
- Cash, Coins and other cash equivalents . (stamps, Travelers checks, Bank Notes)
- Property used or intended to be used in Business. (TOOLS IF YOU MAKE YOUR LIVIMG FROM THEM)
- Home computers
- Rugs, Tapestries, Wall hangings
- Silverware and Gold ware
- Guns/Firearms
- Jewelry
- Trading cards, Comic Books, Coin Collections
- GOLD/SILVER Bullion
- Watercraft and equipment
- Trailers
- Cars stored in the garage (ONLY AUTO POLICIES INSURE CARS)
The insurance policy contract provides coverage for some things that happen to your home and contents…. But not for EVERYTHING THAT CAN HAPPEN. Here are areas that you should be aware of:
Losses to your home because of:
Arizona House
- Birds, rodents, insects or domestic animals are not covered. (When your dog goes crazy on New Year’s Eve and rips down all the drapes… not covered!)
- Damage to your home caused by deterioration, settling, contamination or nuclear hazard… not covered. (That old roof, is probably not an insurance problem. The crack in the tile floor, probably not.)
- Earth movement including earthquake and mudslide is not covered under your home policy.
- Flood is not a covered loss under a home policy. (Toilets overflowing are not floods!) Flood usually happens when it rains for 40 days and 40 nights… If you see animals going by the house in groups of two chances are that there will be a FLOOD. ) If you purchased a FLOOD policy, you will have a chance to make a claim.
In recent years, more and more people are running a business from their home. The common belief is that if the business is in the home that the home policy will cover the business. STOP THINKING THIS!! Your business in home needs the same type of business policy as if you were renting space in a strip mall or had your own business location. Your home policy was never intended to insure the business contents or liability exposure.
To find out how much coverage you need or see if you are currently under-insured, please fill out one of our free Arizona Home Insurance quote forms.
I love insurance for what it was designed to do. It protects you from financial loss for certain things, but not everything. The best way to make sure that your unique situation is taken into consideration when purchasing any insurance contract is to take the time to work with your agent. Go over the areas that are limited. Agree to taking on the risk yourself or passing it on to the insurance company for additional premium, but most importantly, don’t learn about your contract after the loss happens!