Top 5 Things You Probably Do not Know About Your Home Insurance Policy

Many homeowners may not be aware what their home insurance covers or excludes. For example, many people with homeowners insurance believe that flood damage is covered by their insurance policies. It is important to avoid making such costly assumptions. Policyholders should find out what is included in their policies because the terms and privileges of home insurance vary from one state to another.Another misconception is that all insurance policies are the same. This is false because there are many types of insurance policies, each with its terms, benefits and coverage. However, regardless of where an individual lives, homeowners insurance covers more than structural damages. Here are five surprising facts about home insurance that many policyholders may not know about.

1. Mandated upgrades and spoiled food coverage

While there are different types of homeowners insurance, the standard policy, known as the HO-3 home policy provides cover for ordinance or law that requires homeowners to upgrade their homes to conform to certain building codes. This policy covers the costs of such upgrades.

For instance, if a house gets burned down and a new legislation requires homes to have sprinklers, upon reconstruction, the sprinklers will have to be installed. This policy covers the extra cost of undertaking such an upgrade.

The basic home insurance policy also covers the owner’s refrigerated items. For example, when a power surge spoils the fridge and the food items in it, the insured can be reimbursed up to $500 under the basic cover. However, homeowners can purchase additional ordinance and law coverage if they believe they are at greater risk.

2. Slander, Libel and Dog Bites

Another form of protection that comes with home insurance is liability coverage. This type of cover applies when a client is sued for oral or written publication that another person or organization considers libelous or slanderous. Such liability coverage also protects dog owners.

Many insurance companies provide home insurance policies that provide dog-bite protection at no extra cost. Most home insurance policies provide $100,000-$300,000 in liability coverage. This kind of protection helps homeowners avoid costly claims. The average cost of a dog bite claim can be as high as $26,000.

3. Miscellaneous accidents

Home insurance is a general liability policy. It covers many activities that may not be directly related to policyholders’ homes. This policy covers clients no matter their actual location. For instance, the policy provides cover in case a person drives a bicycle into a client on the street causing injuries.

4. Extra Living Expenses

The cost of damage caused by falling snow on property and burst pipes is covered in home insurance. Home insurance also covers extra upkeep expenses caused by damage to policyholders’ homes. For example, if a home is damaged and the owner and his family have to live in a hotel, the policy will cover the hotel and restaurant expenses.

5. Student Property

Your insurance policy also covers damage to property of people staying in a home. Students, who leave their property at home when they go to college, get to have their property covered by their parents’ policies. This type of cover is provided at no additional cost.

If you have any other questions regarding what your policy does and does not cover check out a comparison site like

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