5 Things Your Homeowner's Insurance May NOT Pay

There are a few things that Homeowner's insurance might not pay for. These include flooding, insect damage, earthquakes, sewer backups, and other natural disasters. Homeowners insurance also might not mold, unless it came from a defect from your house, like your hot water heater flooding. If the nearby river overflows and your house gets mold, most homeowner's policies don't cover that.

00:00 Homeowner's Insurance Coverage
00:25 Are Floods covered by Insurance?
01:40 Earthquake insurance
02:21 Mold covered by homeowner insurance
03:30 Wear and tear covered by insurance
03:40 what does a home warranty cover
05:20 roof leaks and pool equipment
06:50 hot water heater home warranty

Companies that give homeowners insurance are companies like Lemonade, USAA, Erie Insurance, State Farm, Amica, American Family, Nationwide, and Farmers Insurance

[temitopeadeyeye]

Thanks for adding value to the community!!

[temitopeadeyeye]

I am a newbie so no experience yet of course praying there wouldn't be any.

[donwhittaker]

Oana: "Hot water heater goes boom, baby."
We had that happen the day after Easter this year (about 3 hours after we got back in town from a trip). We caught it in 30 minutes luckily. But, the cleanup, drying and restoration was nearly $30K. All we had to pay was our deductible. But we had a few months of inconvenience.

[donwhittaker]

I carry earthquake insurance here in San Diego. You get it through the California Earthquake Authority (CEA). The good news is that it is very affordable. Mine is $400/year for about $1.5M in coverage. BUT... the bad news. There is a 10% deductible. Ouch. Even so, better to come up short by $150K, than $1.5M.

[adamdeangel]

It always seems like hot water heaters want to go boom around the holidays. 😆

Ours went boom two days before Thanksgiving in 2019.

[donwhittaker]

From someone who had a total loss in 2007 from a wildfire (well over $750K at the time), let me pass on what I learned about insurance. (1) Do not trust anything an insurance agent tells you verbally. Always, and I mean always, get it in writing. Get a copy of your policy and read it. Boring, I know. But freakin read it. (2) And then, understand all of the various coverages. Coverage A is your dwelling. But not all of the dwelling coverage (see Coverage B). Coverages C and D limits are based on percentages of A, which makes them low. (3) We were drastically underinsured, so we took a big hit on the rebuild (about $200K short). (4) Lastly, get as much coverage as you can afford. If you can't afford it, raise the deductible and the premium is cheaper. We now have a $2, 500 deductible with $1.65M in dwelling coverage (A & B). Our premium is less than $400/mo.