Before you can close on your home, your lender will want to see proof that you’ve purchased homeowners insurance for your new home. There’s a lot of confusion out there about what home insurance covers – and what it doesn’t.
In short, houselogic says, home insurance covers your house and your possessions if they are damaged or destroyed. The devil is in the details, though, because you’re only covered if certain things or events cause the damage or destruction. According to houselogic, some of the occurrences commonly covered by home insurance include fire, lightning, explosions, riots, aircraft, vehicles, smoke, theft, vandalism, and volcanic eruption.
What’s not on the list for most home insurance plans? Coverage if the damage or destruction is caused by flooding. A flood insurance policy must be purchased separately if you want that coverage.
You’ll also find that routine wear and tear and basic home maintenance costs are not covered. This includes repair or replacement of appliances or major home systems.
Every policy is unique. What does your home insurance cover? It’s important to carefully read and understand your policy so that there is no confusion when you need to file a claim.
