5 Common homeowners coverage gaps (and their solutions) electricity electricity goodness

Ice dams are created when ice builds up on the eaves of you home, which are often cooler than the rest of the roof line due to the lack of heat coming up from the home. As ice builds up, water can back up and be trapped on the roof by the barrier of ice. When this happens, water is pushed back up under the shingles, entering the home.

The standard HO3 policy covers contents or personal property on a broad form. This means that unless it is specifically listed as a covered cause of loss, there is no coverage. You’re on your own to repair or replace the damage to your couch, table, clothes, etc.

You can cover this exposure with the Special Personal Property endorsement. Some carriers call this HO15 coverage and some just write the policy on an HO5 form, either way this eliminates the named causes of loss and says that all losses are covered unless specifically excluded.

Properties close to the water are often subject to a special deductible for a wind loss. The coastal winds can lead to extensive property damage and by requiring a separate wind deductible; the insurance company is pushing some of the risk back on the policy holder.

Whenever possible, it is adventurous to find a carrier that will use a named storm or hurricane deductible rather than a wind deductible. The named storm deductible dictates that only losses caused by a named hurricane or tropical storm by the national weather service, is subject to the special deductible.

While it may not be possible to avoid the named storm deductible when insuring a coastal property, the coverage provided is much more inclusive than the wind deductible. A standard wind loss would be covered by your AOP or all other peril deductible. 3. REFRIDGERATED PRODUCTS

In New England, both blizzards and summer thunderstorms can lead to the loss of electricity at your home. When the power goes out, so does your refrigerator. You had just gone to the grocery store to stock up on almond milk and kale salad and the twenty-four hours of roughing it with flashlights and candles has led to the spoilage of your fridge full of treats.

Most insurance carriers will offer an endorsement to cover food spoilage after a power outage. These losses can be significant as we all know you can’t go to the grocery store and get out of there without spending a small fortune. Because of this, insurance carriers have placed caps on the amount paid out under this coverage. Most companies will only cover $250-$500 of spoiled food due to the loss of power.

At that point, it may not be worth filing the claim and having that mark against you. While it is highly unlikely that a policy would be non-renewed or canceled due to a $250 food spoilage payout, claims history is taken into effect when determining rates and policy eligibility.

A homeowners policy will cover your jewelry, subject to your deductible, as contents if damaged by a covered cause of loss. However, if your jewelry is lost or stolen the policy will have special limits of coverage. The basic HO3 form will cover up to $1500 for theft of jewelry.

By scheduling or listing your jewelry on the homeonwers policy, you will pay a small additional premium to protect your jewelry from its full value. Jewelry scheduled on the home policy, is not subject to the policy deductible. The Takeaway – Homeowners coverages

While there is a lot of coverage afforded in the standard Massachusetts homeowners policy, there are some important homeowners coverage gaps that need to be addressed. It’s important to know what your policy will cover if you do suffer a loss.