Homeowners Insurance and what it WON'T cover...

We all pay for homeowners insurance with one goal in mind - protect our stuff. I also say insurance is a blessed curse...It's something we all need but rarely use but if we need it we're glad we have it. IT'S EXPENSIVE!  I don't sell insurance so I don't know all the ins and outs but I thought it would be helpful to do a little research on what is not covered.  I think you'll find this information helpful.  As we know, Summerville and our surrounding areas just got hit by Hurricane Matthew so this knowledge may be very useful.

1. Flooding.  When you buy a home you may be required to purchase flood insurance depending on where you are located. It can be as cheap as a few hundred dollars a year  but can easily go up to thousands.  
2.  Earthquakes.  Summerville residents, in my opinion, should have an earthquake policy, since Summerville runs along a fault line and we have multiple quakes every year. 
3. Your deductibles are going up 2-5%/year.  Keep some spare cash around for these.
4. Simultaneous, or co-current events. This means that if 2 bad things happen at once and one of those (such as flooding) is not covered then you are going to be paying out of pocket a lot of money.  
5. Termites - Here in the Low Country I highly recommend having a Termite Bond and renewing it yearly.  Mortgage lenders will require it for a buyer and if there is not one you may have to purchase one and they can cost a thousand dollars. Also, if you get termites the bond will protect you. No bond - no protection.  
6. Jewelry and personal property. Know your policy and ask your salesperson what is covered and not covered.  You may need a separate rider to protect your stuff. 
7. Total rebuild. Many policies have caps that won't cover a rebuild if your home catches fire. Make sure you understand. 
8. Home Businesses - Your probably need a separate insurance policy on your business if you run one out of your home. If you are running a catering business and you get sued for someone getting sick your homeowners does not cover that. If you are running a personal training business and someone breaks an ankle - you are not covered. 
9. Broken/burst pipes.  If there is owner negligence, for example, turning off the heat during winter while you are on vacation, and your pipes freeze you may be at risk of not being covered. 
10. Certain dog breeds - While most dog types are covered there are some that are insurable. Breeds such as Rottweilers, chow chows, Doberman pinschers, pit bull terriers and Akitas are all uninsurable breeds.

These are some things to consider when looking into homeowners insurance. We hope this helps you and feel free to contact us if you have real estate questions.

-Jason
843.696.8627

Who do you know looking to buy, sell or invest in real estate. Please call Jason at 843.696.8627 or email at Jason.Gregg@kw.com for more information.