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What Your Property Insurance Doesn’t Cover

What Your Property Insurance Doesn’t Cover

Ask the average homeowner what their property insurance covers and they will probably say “not much”. All too often homeowners make claims against their property insurance for common occurrences that simply aren’t covered by the policy. There are many things covered by property insurance: fire, lightning, explosion, smoke, windstorm, hail, riot, civil commotion, aircraft, vehicles, vandalism, sprinkler leakage, sinkhole collapse, volcanic action, falling objects; weight of snow, ice, or sleet; water damage (in the form of leakage from appliances); and collapse from specified causes (unless, of course, any of these are specifically excluded). However, there are some specific exclusions you should be aware of since claims for any of these will not be covered under your policy. Vermin & Animals The specific property exclusion in the Homeowners 3 – Special Form (HO3) policy form looks like this:     Vermin includes lice, fleas, roaches, bed bugs, and rodents. Damage or infestation by these pests is not a covered peril under your homeowner’s insurance policy. Damage to the home and subsequent repair and treatment of the home would be an out-of-pocket expense. So what is considered a rodent?  According to Wikipedia, the most well-known rodents are mice, rats, squirrels, prairie dogs, chipmunks, porcupines, beavers, guinea pigs, hamsters, gerbils, and capybaras so damage by these would not be covered. What about skunks, bats or raccoons? None of these are considered insects or rodents, so coverage would most likely apply to damage made by these creatures. However, check with your broker or insurance policy for a complete definition. As for part (h) – “Animals owned or kept by an ‘insured’” this means...
What is Difference in Conditions?

What is Difference in Conditions?

All over the country and around the world, natural disasters and man-made catastrophes seem to happen on a daily basis. Earthquakes, hurricanes, fires, and flooding have begun to take their toll in certain areas, causing ripple effects in the insurance industry. After several years of hurricanes in the late 90s and early 2000s, Florida created Citizens Property Insurance Corporation in 2002. This was to be the insurer of last resort for homeowners, condominium associations, and co-ops that could no longer find property and/or wind insurance coverage through the open market. Much like the FAIR Plan in California, Citizens offered coverage that was basic perils only. While it did cover windstorm, hail and hurricane coverage, it left many other important perils uninsured. Situations like this are where a Difference in Conditions (DIC) policy comes in handy. Read on to find out more about DIC and if this coverage is right for you. What is Difference in Conditions? A Difference in Conditions policy is the property insurance equivalent of “gap” coverage. This coverage can be written to cover many different perils that may not be covered by a standard property insurance policy. If you want or need coverage not offered under your personal lines or commercial policy coverage, DIC is right for you. Some of the most important coverage items include: Perils to bring either basic or broad form up to special form, such as: Weight of ice, snow or sleet Collapse from specified causes Falling objects Water damage (in the form of leakage, not flooding) Theft Earthquake (earth movement) Flood Are All DIC Policies the Same? There is no standard...