Homeowner’s Insurance: Read the small print. January 15
When you buy any type of insurance, you are paying the insurance company to cover your losses in event of an accident, illness, theft, or other problem. But homeowners are often surprised to find out that the policies they bought do not cover them for certain situations, and it pays to study your insurance policy carefully to make sure you get what you pay for in terms of coverage. Homeowners have to assume more responsibility than ever before in order to qualify for insurance payments in the event of a claim, and insurers are adding more and more small print to limit their policies.
For instance, if a tree limb falls on your roof during a snowstorm you might expect that your homeowner’s insurance policy is going to automatically pay for you to repair the roof and clean up the fallen debris. But many insurance companies will refuse to pay for fallen trees or tree limbs if they discover that parts of the tree were dead, rotten, or diseased at the time of the incident. When you call to make your claim they may send an inspector to examine the tree and if they conclude that the tree is unhealthy, they will say that it was your responsibility to ensure that the trees in your yard were safe. Because you failed to do so, the insurance company can dismiss your claim.
Similar rules apply to everything from the type of dog you own to the frequency with which you repaint your house. So it pays to carefully examine your homeowner’s policy to know exactly what is covered and what is not. If you aren’t sure, consult your insurance representative or an attorney and have them explain the policy to you and clearly answer all your questions.