Is Your Property Insured? Are You Sure?
An informative article from Alliance Insurance Services, LLC
January 22, 2008

Insurance is a product that has protected Americans since colonial times, Lloyds underwriters insured shipments from England to her colonies from 1688 on. Property insurance started in the United States by protecting against a fire loss and nothing more. It has evolved to cover many types of losses including, wind, hail, vandalism, theft of personal property, and others.

The evolution of property insurance (homeowners insurance) has been a simple supply and demand process. Consumers asked and received more coverage and insurance companies asked for and received more premiums in return. These all inclusive policies are great, but they do pose a couple of problems. Many of us think that we are insured against any and all losses. That simply isn't the fact. I want to point out a few things that you may not be insured against. Some of these exclusions are well known and understood. For instance, an insurance company will not pay a fire claim if you intentionally set the fire - aka ARSON. While other exclusions are a surprise to most; your child's go cart or motorcycle does NOT have theft coverage under your homeowner's policy. Please talk to your licensed insurance agents about your policy to fully understand your coverage.

VACANTS: If your home is vacant or unoccupied for more than 30 days your policy clearly states you are not insured. Some agents may tell you that since you have been a long term customer they would pay the claim. I want to point out one simple fact. AGENTS ARE NOT CLAIMS ADJUSTERS! In NC agents are not licensed to adjust claims, and should never attempt to do so. If you open up your policy (I know that it is super boring to read), and find the exclusions section, it will clearly tell you that a home is not insured if vacant.

HOMES for SALE: If you have a home that is for sale, and vacant, you need to read the passage above. Chances are you have no coverage. Some companies do cover this but you need to check.

CONSTRUCTION: Remodeling, room additions, new mechanical devices (heat pump, electrical, plumbing) can create an insurance headache at times also. If you are rewiring your house and you start a fire, that claim can be denied. If you are doing a room addition or remodel and you improperly maneuver a load bearing wall, that damage may not be covered. You need to be aware that companies sell policies for homes undergoing renovation or construction. You also need to be aware that most traditional homeowner's policies do not cover damage caused by said construction.

FLOOD: Homeowners policies do not cover floods. That coverage must be purchased through a federal program that can be administered by your underwriting company.

WATER: We all know that water can cause a lot of damage and can come from a lot of places. Your over flowing washing machine, burst pipes, or overflowing sump pump can cause a lot of damage. What you need to be aware of is that under many policies you aren't insured for the cleanup or damage. Many companies do sell endorsements that will cover these types of losses. You need to see IN WRITING whether you have these coverages or if they are excluded. Don't find out after it is too late!

EARTHQUAKE: This coverage has to be purchased separately as well. Mudslides, landslides, and the most common settling of earth all fall under this exclusion as well. Many people have found this out too late as their foundations have experienced extreme settling due to the recent drought.

ILLEGAL ACTIVITY: If a claim arises because of illegal activity (meth lab, drug sale gone bad) by you or your tenant, your claim will be denied as well.

IN HOME DAY CARES: Are not insured. Some companies offer an endorsement.

If you would like to speak with a licensed independent agent please call Christopher Cook of Alliance Insurance Services at 336-377-9003 or visit www.myallianceinsurance.com.