Your homeowners insurance is an incredible safety net for your household. The insurance plan could provide coverage for some of your biggest nightmares as a homeowner, like becoming the victim of a burglary or having a floor of your home go up in flames. Submitting a claim to your company could help you handle a large portion of the costs to recover from the damages and get your household back to normal.
But it’s important to know that your homeowners insurance won’t help you with every single type of disaster. There are some significant gaps in your coverage. What are these coverage gaps, and what can you do to fill them?
Wear and Tear
Your homeowners insurance won’t provide coverage for issues that can be caused by wear and tear — like when your old sagging roof springs a leak after a particularly rainy day. These types of issues are considered the fault of the homeowners’ negligence. If the roof had been maintained or patched in recent years, then it would likely get through a rainy day without suffering any damage.
So, what can you do to afford these ineligible repairs? Well, if you happen to have a home warranty, you might find that the repair is covered through the plan. A home warranty provides discounted rates for various household repair services. You will have to pay a service fee, along with a deductible in order to access these services.
You should also build a household emergency fund. The emergency fund can help you cover all sorts of urgent expenses right after they drop into your lap, including household repairs that your homeowners insurance deems ineligible. It can also help you pay for last-minute service fees and deductibles for repairs covered by your home warranty plan.
Living without an Emergency Fund
Without an emergency fund, you might not have enough savings to manage these urgent expenses. In that case, you could turn to a website like CreditFresh to see whether you qualify for a personal line of credit loan. An approved personal line of credit could give you enough access to temporary funds to pay off your expenses in a short amount of time. Once those emergency repairs are done, you can turn back to your line of credit and follow its repayment plan.
Lines of credit are meant to be used for emergencies. If your household repair isn’t an emergency, you shouldn’t use this borrowing solution to pay for it. Take your time saving up for the repair.
Flood Damage
Did you know that the average homeowners insurance policy doesn’t cover damages from flooding? If your neighborhood floods in a natural disaster and your basement gets soaked, your insurance policy isn’t going to help you manage the repair costs. Flooding damage is exempt from coverage.
So, what can you do to protect your house from this type of damage? You can fill this coverage gap by signing up for flood insurance. Flood insurance specifically covers losses directly caused by flooding.
Dog-Related Injuries
Now, your homeowners insurance policy will likely offer liability insurance coverage for moments when someone gets accidentally injured on your property. This includes if that person suffers from a dog bite. However, you should know that some insurers will exclude certain dog breeds from coverage. Your dog’s breed just might disqualify you from being able to make a claim.
What can you do if your policy doesn’t accept your dog’s breed in this scenario? You can always shop around for a different insurer. You might be able to find one that doesn’t exclude your dog’s breed.
Another way to fill this coverage gap is to sign up for a personal liability umbrella insurance policy with a separate provider. This type of policy may offer coverage when your homeowners insurance won’t. Before signing up for the policy, discuss your homeowners insurance’s restriction with your dog breed and confirm what type of coverage you can access in case of a biting incident.
You don’t want to leave these gaps wide open. Follow these tips and fill them up as soon as possible!
