When searching for homes to purchase, you most likely took the time to determine where you wanted to live, along with the amenities that each home offered, until you found one that fit your criteria.  However, when it came to choosing your homeowners insurance coverage, did you take the time to find the type of homeowners insurance coverage that fit your specific needs pertaining to your home and budget?  Not all homeowners policies are built the same.  If fact, there are 7 losses usually not covered by homeowners insurance, of which you may not be aware.

A typical N.C. homeowners insurance policy has many policy provisions, conditions, and exclusions of which you need to be aware; otherwise you may be shocked to find that if you experience certain unfortunate situations, you may be faced with a coverage denial.

Below Are Some Situations That Your Standard N.C. Homeowners Insurance Policy Typically Does Not Cover:

Sewer/Drain Back ups- Typically, this kind of damage resulting from sewer or drain back up into your home is excluded.  If a sewer backs up into your home, you may be responsible for all the damages, along with the messy clean up, unless you have a specific endorsement that would add the coverage back to your N.C. homeowners insurance policy.

Earthquakes- Damages caused by earthquakes are excluded under your N.C. homeowners insurance, unless you have a specific, separate policy for earthquakes.  It may be wise to discuss, based on your home location, whether you need to invest in an earthquake insurance policy. 

7 losses typically not covered under homeowners insuranceHome Renovations/Updates- Before you start that home renovation, you need to be aware that a standard homeowners insurance policy won’t provide coverage for all losses/damages that may occur during the renovation process.  Depending on the scope of the renovation, taking out a special policy for the job may be recommended. You should contact your local N.C. independent insurance agent to determine whether your homeowners insurance would cover your specific needs, as your contractor’s insurance may not cover all your insurance needs.

After the renovation is complete, you may also wish to discuss the increase in your home value, if it is significant, to make any necessary adjustments to your homeowners insurance coverage limits.

Smell Damages- If you have possessions or something in your home that has a lingering smell, your standard homeowners policy will not provide coverage to replace these items.  For example, if you are in the process of updating your home and you need to move some of your contents into a storage unit, you may be surprised to find a lingering pungent odor to your contents upon removal from the storage unit, and a normal insurance policy would not provide coverage to replace these contents, due to smell.

Slow Leaks (Seepage)- Slow leaks and ground water seepage are excluded under a typical N.C. homeowners insurance policy, so for water damage to be covered it must be sudden and accidental.

Historical Demands- If you reside in a historical district that imposes demands for updates to your home following a loss, your homeowners insurance coverage may only apply to certain provisions or limitations so repairing your home (within the historic guidelines) may be more than your homeowners insurance will cover.

Sinkholes- Damages to your home caused by sinkholes are excluded under a standard homeowners insurance policy, so if you wish to have sinkhole coverage you would need a separate policy designed for that.   

Paramount Insurance Agency understands that N.C. homeowners insurance policies are unique to the home and the homeowner and each one should be designed with your specific needs in mind.  If you have any questions regarding your N.C. homeowners insurance policy, conditions, provisions, or exclusions, contact us at 866-869-3335 so we may assist you.