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Things Your Homeowners Insurance Policy Should Cover (But Probably Doesn’t)

Purchasing Homeowners Insurance

Purchasing homeowners insurance is an important safety measure to protect your investment and your family, but even the most comprehensive policies don’t cover a number of common hazards that can wreak havoc on your home.

If you purchased homeowners insurance directly from a carrier instead of through a broker, your policy is probably full of exclusions you didn’t know were there.

The Blue Lion Insurance Advisors Difference

At Blue Lion Insurance Advisors, LLC, we work with you to identify the risks you need coverage for and build a policy around those.

The following are just some of the risks we might consider during a consultation:

   • Accidents involving a swimming pool (considered an attractive nuisance)
   • Burst water pipes
   • Construction damage caused by contractors during a renovation or expansion
   • Counseling or therapy following a major loss
   • Damage from smog or smoke from nearby industrial activity
   • Damage from termites, insects, birds or rodents
   • Dog attacks from certain “aggressive” breeds
   • Earthquakes and other earth movement related losses (sinkholes, mudslides, etc.)
   • Flooding
   • High-value items such as collectibles, jewelry or fine art
   • Hurricanes
   • Injuries caused by trampolines
   • Mold
   • Sewage backups, drainage problems or sump pump overflow
   • Stolen cash

A Stitch in Time Saves Nine

It’s important to note that negligence or failure to keep up with regular household maintenance could void the coverage you do have. The best way to avoid losses not covered by your policy is taking proper care of your investment to begin with.

Put together an all-inclusive home maintenance checklist and run through the list every 6 to 12 months. If you live in an area susceptible to pest damage, pay for periodic professional inspection and pest control to minimize structural damage should your home suffer an infestation.

Prepare pipes for the winter. Clean out storm drains and test your sump pump prior to the rainy season.

Understanding the Role of Deductibles in Coverage

All too often homeowners wind up disappointed to learn that their insurance claim has been rejected because the loss is lower than their deductible, the amount that the insured party must pay when a claim is filed.

So, for example, if you file a claim for $800 worth of damage from a storm but your deductible is $1,000, you will be 100% responsible for the loss. And unlike medical insurance deductibles that add up over the course of the year, homeowners insurance deductibles generally apply separately to each incident.

Choose wisely when having your policy written to select deductibles you are comfortable with. A lower deductible will lead to higher premiums, but the trade-off is often worth it as you’ll be eligible to file a claim for smaller losses.

Protect Yourself with a Separate Liability Policy

Whether it’s the neighbor kid falling off your trampoline, the mailman getting bit by your dog or an unfortunate tragedy related to your swimming pool, losing a personal liability lawsuit can lead to bankruptcy.

If your property features high-risk features not covered by a standard homeowners insurance policy, consider purchasing an additional personal liability policy for additional protection and peace of mind.

At Blue Lion Insurance Advisors, our policies cover a variety of common and not so common risks. Contact us for a free consultation or to get a quote.

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