It’s important that property owners understand that the typical homeowner’s insurance policy doesn’t cover everything. While a fire or fallen tree may be covered, other traumatic events such as floods, earthquakes, and tornadoes are not covered under the traditional homeowner’s insurance policy.
Here are three things that policyholders expect to have coverage for, but don’t:
1. Jewelry and Fine Art
The typical homeowner’s insurance policy will only reimburse property owners for a maximum of $1,500 for lost jewelry. Considering that the average cost of an engagement ring is $4,758 alone, the allotment for jewelry under a traditional homeowner’s insurance policy is nothing compared to the value of people’s’ most prized possessions.
It’s in the homeowners’ best interest to speak with the insurance provider about additional coverage to secure the finer items in their home such as jewelry and artwork. However, since many people have the misconception that the typical homeowner’s insurance policy covers jewelry and fine art, they may not even be aware to their insurance agent about this additional coverage. Having a residential inspection performed on behalf of the insurance carrier will help to identify potential areas of insufficient coverage and highlight new opportunities to serve insureds.
2. Sinkholes
If a sinkhole occurs in a property owner’s yard but doesn’t touch the house, it’s not going to be covered by the typical homeowner’s insurance policy. This means the homeowner would be responsible for covering the repair for the sinkhole out of pocket.
Considering that Florida has more sinkholes than any other state in the country, it’s important that insurance carriers are talking to Florida homeowners about purchasing additional coverage for sinkholes.
3. Pool Accidents
While the typical homeowner’s insurance policy offers liability coverage, any accidents that occur in a swimming pool are usually excluded. This means the homeowner could be on the hook for paying for medical bills if a family friend has an accident while visiting your pool. It’s in the property owner’s best interest to get at least $300,000 in additional liability coverage and purchase an umbrella liability policy for an additional $1,000,000 in protection.
When having a residential inspection performed, our team at Insurance Risk Services can confirm that the pool meets the proper safety standards for a claim to be accepted. This helps to mitigate risk for both the property owner and the insurance carrier.
A residential inspection is just one way that our team at Insurance Risk Services helps insurance carriers to accurately underwrite risk. Please contact us to learn more about the value that we deliver to our insurance carrier partners.
