What does California Homeowners Insurance Really Cover?

home-iconThe majority of us do not tend to think about what our Homeowners Insurance policy covers, or does not cover until disaster strikes and we learn about the policy “exclusions” the hard way.  We assume that our Homeowners Insurance will be there for us and cover any type of damage.  This however is a very unfortunate and common misconception.  According Bankrate, “a survey found that 81 percent were aware flooding is not covered by regular homeowners insurance.”  So what are some hazards a standard homeowners insurance policy may not cover?

  • Mold – a standard homeowners insurance policy generally either limits coverage for mold damage or outright excludes it.
  • Sewer Backup – When a sewer backs up into a home, it can damage floors, walls, furniture and electrical systems.
  • Earthquake – Most home insurance policies will not cover damage associated with “earth movement,” such as an earthquake
  • Termite Infestation – The National Pest Management Association estimates that termites cause $5 billion in damage in the U.S. each year.
  • Appliances – homeowners policies typically do not provide coverage for replacing appliances that break and fail to operate.
  • Flooding

An example of what a policy does include that many are unaware of is that many homeowners insurance policies will cover their college students personal property, even when they go to college out of state, as long as they are living in on campus housing.

It is extremely important that you have an agent and insurance carrier you can trust, who will take the time to discuss the inclusions and exclusions of a homeowners, or renters insurance policy. Call us today and we would be more than happy to assist you with any questions you may have to assure that you are properly insured before any misfortune that could take place.