3 Things That May Or May Not Be Covered By Your Property Insurance

Posted on: 9 September 2017

Homeowners' insurance is meant to be there to provide reimbursement to you in the event of personal property loss or damage to your personal property.  Unfortunately, property insurance can be very difficult to understand. In fact, many homeowners fail to fully comprehend what is covered and what is not covered under their policy. This can lead to some homeowners not even filing a claim when damage or loss occurs. To help clear up some of the confusion, here are three particular areas that homeowners tend to be the most confused on:

1. Business-Related Claims

Homeowners' insurance is not designed to cover business-related liability claims. So, if you have a home-based business and a client files a lawsuit against you, your property insurance is not going to cover legal fees or anything related to the lawsuit. You are going to need to purchase business liability insurance separately to ensure that you are properly covered.

However, if you are looking for home office equipment to be insured, then your home property insurance may cover losses in terms of theft or damage up to a certain amount.

2. Dog Bite Claims

The Insurance Information Institute reports that the money that was used to pay over one-third of property insurance liability claims was in related to dog bite and dog-related injuries in 2015. This cost insurance companies more than $570 million.

As a general rule, any incident that results in an injury or accident by your pet will be covered by your homeowners' insurance. There are instances when your policy may not cover injures or accidents, such as if your policy excludes a certain size or breed of animal. In addition, if your pet shows a certain type of behavior, your insurance company may exclude any future incidents from coverage.

3. Motorized Equipment Claims

More often than not, any type of motorized equipment that you have on your property will not be covered by your homeowners' policy. This is usually due to liability purposes. For example, if you have a boat, motorcycle, golf cart or an ATV, it will need separate coverage in order for any losses to be covered. If you have a small motorized vehicle, such as a Power Wheels, your insurance policy may cover damage done to it.

Every homeowners' insurance policy is different, and each insurance company provides different types of coverage. Therefore, if you are unsure what is covered by your homeowners' insurance policy, reach out to an  insurance agency, like All Risk Insurance Group, for clarification.