What are Common Policy Exclusions For Home Insurance?

As a new homeowner, you might be wondering what exactly your home insurance covers. While not every policy has the exact same coverage, most home insurances providers have the same policy exclusions, whether in Longmont, CO or outside of this area. Here are a few common policy exclusions you may be met with when you purchase your home insurance from 1st American Insurance Agency.

Water damage

You might think that your home insurance covers all natural disasters, but this is not the case. While disasters such as fires are covered by your standard policy, a common policy exclusion is water damage.

Water damage includes floods and sewage backups. If you live on a flood plane in Longmont, CO, you may have to purchase a separate flood insurance policy in order to satisfy any zoning or mortgage requirements.

Earth Movements

Another natural disaster that is not usually covered by home insurance is an earthquake. Any type of damage from Earth movements, including but not limited to landslides and earthquakes is something you will have to pay out of pocket for.

If you live in a place where earthquakes aren’t common, you may not have to worry about this coverage gap. However, since any land is technically prone to experiencing earthquakes, you may want to look into a customized type of coverage. The simplest way to cushion the costs of any coverage gap is to buy out umbrella insurance.

Ordinance Law

Your home insurance policy will typically cover the rebuilding or restructuring of your home if the damage is done is due to theft or fire. However, if your city or state mandates that your home has to be fixed or demolished, you cannot count on your policy for that coverage.

For instance, if your home is deemed inhabitable and it is condemned through legal measures, your home insurance policy cannot reimburse you for the upgrades that need to be done to the home in order for it to be cleared. You cannot claim expenses for the destruction of your home in this instance, either.

What Exactly Does Your Insurance Cover?

Now you know what the common exclusions of all home insurance policies entail. Are you ready to find out what yours might include? If so, call one of the friendly agents at 1st American Insurance Agency today for a quote or a consultation. They will help you come up with exactly the type of coverage you need.

Looking for car insurance in Colorado? Read here first.

Driving a car is a big responsibility that you always need to take very seriously. For those that live in the Longmont, CO area, understanding all of the requirements that go into owning a car is important. One of the most important responsibilities that come with owning a car is maintaining insurance on it. When you are looking for car insurance in the area, there are many important factors that need to be taken into consideration.

State Minimum Coverage

When you are shopping for your next policy, it is important to know the state requirements. In Colorado, you will need to have minimum liability coverage of at least $15,000 for property damage coverage and bodily injury coverage of $25,000 per person and $50,000 per incident. If you do not have this level of coverage, you could face penalties if you are caught without it. 

Collision and Comprehensive Coverage

While the state will only require that you carry a minimum level of liability coverage, you will also need to have collision and comprehensive coverage in some situations. This type of coverage will provide you with coverage for theft, vandalism, and many other issues that could cause a loss. This is also a requirement if you have a loan against your vehicle. 

Once you are ready to start looking for your next auto insurance policy in the Longmont, CO area, you should speak with the team at 1st American Insurance Agency. The 1st American Insurance Agency has a team of experienced professionals that can help you to better understand your insurance needs. When you come to this agency you will learn far more about what your requirements are and what type of policy will best meet your needs.