advertisement
Floods, meanwhile, aren't covered under homeowners insurance policies -- something many Katrina victims learned to their chagrin. The National Flood Insurance Program, run by the Federal Emergency Management Agency, offers coverage. If you live in an area that's prone to either floods or hurricanes, you need both wind and flood coverage.
If you're the victim of a landslide, however, you're pretty much on your own. That kind of earth movement usually isn't covered, so it pays to get a geologist's report before buying any home near a cliff or on a hill.
Neglect
If a tree topples over in a windstorm and crushes your house, you're covered. If your home collapses because of a termite infestation, you're probably not.Insurers expect you to take care of your home and deal with any maintenance issues on your own dime. Insurance generally covers sudden and unexpected losses, not losses from termites, rodent infestations or a water leak you never quite got around to fixing. You're expected to detect the problem and prevent the situation from getting out of control. If you don't, any damage done typically won't be covered by your insurer.
Bruce Johnson, author of "50 Simple Ways to Save Your House," recommends you conduct regular inspections to detect such problems. At least twice a year, tour the exterior of your home looking for cracks, decay or water damage. Check the condition of the roof and inspect the basement or crawl space for other hidden problems, including rodent droppings, termites or leaks.
If you find a problem, fix it. Remember that home maintenance problems usually just get more expensive.
More from MSN Money
Trampolines
Insurers charge more for certain hazards, like pools and spas. Trampolines, though, are often excluded outright.They're a whole lot of fun, but they also offer a whole lot of ways to seriously hurt yourself. That's why your homeowners policy probably excludes trampolines from coverage and why your current insurer may threaten to drop you if you buy one. They simply don't want to pay for the lawsuit and medical bills if the neighbor kid breaks his neck.
If you insist on having one, you may need to shop around for an insurer that will tolerate, if not cover, trampolines. But you might want to think seriously about a less hazardous form of at-home fun.
Video on MSN Money
How to protect your homeHere's how to find the right homeowners insurance at the best price and avoid cancellation.
Dogs
If you own a toothless Chihuahua, your insurer probably doesn't care. Buy a pit bull, Rottweiler or wolf hybrid, however, and you may find your insurance gets more expensive -- if you can persuade your insurer to cover you at all.Dog bites cost insurers about $310 million a year, and an increasing number of companies have a blacklist of breeds they won't accept or charge more to cover. Pit bulls, which lead the Centers for Disease Control and Prevention's list (.pdf download) of deadly breeds, are particularly unwelcome. Other troublesome breeds include German shepherds, Rottweilers, wolf hybrids, huskies, malamutes and Dobermans.
If your dog has ever bitten anyone, regardless of its breed, you're probably going to have trouble getting coverage as well -- particularly if it was an unprovoked attack. (See "Your dog's bite could bankrupt you.")
Each insurer has different policies, though, so you may be able to find affordable coverage if you shop around. You also can ask the insurer to exclude your dog, meaning that you'll pay for any damage it does. You also should invest in some training, since a biting dog is a hazard to everyone around you.
Continued: Intentional damage, computers and luxury goods
< previous | 1 | 2 | 3 | next >
Rate this Article
High