Home Insurance Loopholes - You May Not Get What You Think You're Paying For

If you have home insurance, it is likely that your plan is a standard one that resembles most home insurance plans around the country. Generally, it will most likely cover structural damage to your home and other structures on the property (such as a shed or garage), personal injury liabilities you incur if someone is hurt on your property, damage to objects you store in your home, and extra costs of living that you might incur if your home becomes uninhabitable.

These basic home insurance plans, however, are not without loopholes. Certain events that may fall under one of the categories listed above may not be covered if the cause is one that the insurance company specifically excludes.

Unfortunately, most people are unaware of home insurance loopholes until it's too late and they are trying to get reimbursement for a claim.

Some Common Home Insurance Loopholes

A common loophole in your home insurance plan has to do with structural damage caused by termites.  Perhaps you just learned that the foundation of your home has been destroyed by termites and needs to be replaced.  Most insurance companies will not cover this because the termites were most likely there before you purchased your home.

 

Another loophole has to do with coverage of your personal belongings.  You need to make sure that your home insurance policy covers personal effects in the first place.  Many policies do not.  Even if your homeowners insurance policy does cover personal property, people who have lost everything due to a disaster are shocked to find that the insurance company will not reimburse them because they could not produce receipts for their personal property. Sometimes the home owner did have receipts, but the receipts were destroyed along with the home. Fo=channel>