When it comes to homeowners insurance, many Vermont residents may feel confident that their policy has them covered for nearly every situation. While a standard policy offers valuable protection, it’s important to understand that there may be gaps in your coverage. The last thing you want is to be left unprepared after a claim. In this blog, we’ll explore some common areas that might not be covered by your homeowners insurance policy—and why you should think about customizing your coverage.
Does Your Home Insurance Cover Floods?
Flooding can be a devastating event, and it’s one of the most common natural disasters in Vermont. Unfortunately, homeowners insurance doesn’t typically cover damage caused by flooding. Whether it’s a major river overflow or a flash flood caused by heavy rains, this peril often requires a separate policy.
What You Can Do: To protect yourself from the financial burden of flooding, consider purchasing flood insurance through the National Flood Insurance Program (NFIP). It’s especially important in areas like Vermont, where the risk of flooding can increase in certain seasons. Flood insurance can be tailored to meet your home’s specific needs, helping you recover without the worry of unexpected costs.
Is Your Personal Property Fully Protected?
Most homeowners insurance policies cover the structure of your home, but what about your belongings inside? While policies typically cover personal property like furniture, clothing, and electronics, there may be limits or exclusions depending on the type of item and its value.
What You Can Do: Review your policy to ensure your personal property is sufficiently covered. You may want to add coverage for high-value items such as jewelry, art, or collectibles, which often require additional coverage or a rider to ensure full protection. Also, be mindful of off-premises coverage—items stolen or damaged away from your home may not always be included in your standard policy.
Are Your Guests Covered If They’re Injured?
Accidents happen. Whether a guest slips on a patch of ice in your driveway or gets injured during a friendly game of backyard basketball, you might be wondering if your homeowners insurance will cover their medical expenses. Typically, liability coverage under a homeowners insurance policy will help with injuries that occur on your property, but there are exceptions.
What You Can Do: If you frequently host gatherings, you might want to add extra coverage for guest injuries, especially if you have features like a pool or hot tub that can pose a higher risk. You can also consider increasing your liability coverage to provide more financial protection in case of an accident.
Is Your Home’s Outbuilding Covered?
Outbuildings, such as sheds, barns, or detached garages, are often overlooked in a standard homeowners insurance policy. While some policies provide limited coverage for outbuildings, the coverage amount might be inadequate to repair or rebuild the structure in case of a disaster.
What You Can Do: Ensure that your outbuildings are properly covered by adding an endorsement or rider to your policy. Since many Vermont homes feature outbuildings for storage, farming, or recreational purposes, it’s crucial to verify that these structures are fully protected in case of fire, storm damage, or theft.
What Happens If Your Home Is Uninhabitable?
If your home becomes uninhabitable due to a covered event, you may face costly living arrangements while repairs are being made. Some policies offer “loss of use” or “additional living expenses” (ALE) coverage, but it may not be as comprehensive as you think.
What You Can Do: Double-check your policy to see how much ALE coverage is included and consider increasing it if you believe the standard limit might not be sufficient. In areas like Vermont, where repairs after severe weather can take a long time, having extended ALE coverage could be invaluable for covering your living costs until you can return home.
Does Your Home Insurance Cover Earthquakes or Landslides?
Although Vermont is not known for high seismic activity, earthquakes and landslides can still cause damage, particularly in mountainous or hilly areas. Many standard home insurance policies do not cover earthquakes or landslides, so it’s important to check whether you’re covered for these risks.
What You Can Do: If you live in an area that’s prone to these natural disasters, consider adding an earthquake or landslide endorsement to your policy. Even though Vermont isn’t as vulnerable to these events as other regions, it’s still worth evaluating whether this additional coverage is necessary for your peace of mind.
What If You Have a Home Business?
With more people running businesses from home, it’s important to understand that a standard homeowners insurance policy may not cover the risks associated with operating a business. Whether you’re working from a home office or selling handmade crafts online, your business may require additional insurance.
What You Can Do: Talk to your T.S. Peck Insurance agent about adding a business endorsement to your homeowners insurance policy. This can provide coverage for business equipment, liability, and any income loss resulting from a covered event. If your business involves physical products or services that could cause harm, liability protection may also be a smart addition.
Does Your Policy Cover Pest Damage?
It’s easy to overlook the potential damage caused by pests, such as termites, rodents, or raccoons. Unfortunately, most homeowners insurance policies exclude damage caused by pests, even though the destruction they cause can be extensive.
What You Can Do: To protect your home from pests, consider investing in a pest control service that can help prevent infestations before they become a serious problem. Regular inspections and maintenance can also reduce the risk of damage from pests that aren’t covered by insurance.
Ensure Your Home is Fully Protected Today
While your homeowners insurance policy provides valuable protection for your home and belongings, it’s crucial to review the fine print and understand what is—and isn’t—covered. By identifying potential gaps in your coverage and discussing your needs with your insurance provider, you can ensure that your home is fully protected from life’s unexpected events.
At T.S. Peck Insurance, we’re committed to helping Vermont residents get the coverage they need. Whether you’re concerned about flood insurance, need additional coverage for high-value items, or are looking to protect your business, we’re here to help you customize a policy that fits your unique needs.
Contact us today to learn more about your homeowners insurance options and how we can help you safeguard your home and peace of mind.