7 Things Your Home Insurance Company Won’t Tell You

Home owners insurance companies may not tell you everything you need to know about your insurance before and after you buy it. The reasons why insurance companies may neglect to inform clients of pertinent insurance information vary, and in such instances put responsibility of being informed  squarely on the home owners back. Below are 7 things your home owners insurance may forget or neglect to mention.

1. Not all states require home sellers to disclose home defaults

For new home buyers it is important to note not all states require home sellers to disclose home defaults. Consequently, damages resulting from defaults are not the responsibility of the seller in such cases. Depending on the type of home owners insurance coverage, a home owner’s insurance company may not be responsible for the costs related to the seller’s non-disclosure.

2. Landscaping may only be covered up to a small percentage of a home’s value

If you love gardening and have expensive palm trees, statues, imported trees and otherwise expensive garden, patio and other landscaping in your home, it may be advantageous to be aware of the coverage amount, if any, afforded to home landscaping. Even if your home owners insurance policy does protect against landscaping loss, it may be limited or fixed against proportional value of your home.

3. Home insurance exclusions may include roofer liability

Not all liability is necessarily covered in a home owners insurance policy. For example, insurance doesn’t necessarily cover individuals who are contracted to work on the home such as roofers, plumbers or painters. If these persons don’t have liability coverage, the home owner may be left standing with a liability cost if something happens to them and home owners insurance doesn’t cover related scenarios.

4. Damage caused by a neighbor may be claimed by with insurance through subrogation

In the case of damage to a home caused by a neighbor or passer by, home owners coverage may not end up costing the home insurer anything if they win the right of subrogation. In other words, if the insurer successfully sues the neighbor for the damages and retrieves the cost paid to the insured, they don’t necessarily lose money.

5. A home insurance claim must be filed within reasonable time after the event

Home owners insurance coverage may require claims to be filed shortly after damage to the property occurs. If the home owners insurance claim occurs too late after the fact, coverage may be denied potentially costing the home owner the price of repairing the damages out of pocket.

6. Insurance claims arising out of preventable events may not qualify

In the case damage to a property is preventable by the home owner, home owners insurance does not necessarily cover the cost of repair. For example, if a window leaks due to wear and tear and the owner does not replace or fix the window and rain damage is later caused to the interior of the home from the leaky window then the home insurer may claim the damage was preventable and therefore deny a claim.

7. If your home’s equity is greater than 20% of the purchase price PMI is not needed

Many home owners are aware of  Property Management Insurance (PMI), however they may not  necessarily be clear on when it is mandatory. If a home’s equity exceeds 20% of the mortgages value, then PMI can be canceled. Similarly if 20% of the mortgage is paid off the PMI insurance may also be canceled.

A.W. Berry -HomeownersInsurance.org Expert A.W. Berry is a published personal finance writer with an interest in all kinds of money matters. His professional background in finance, marketing and sales directs his reporting to pertinent local issues.