Main Content

HOMEOWNER’S INSURANCE – WHAT ISN’T COVERED?

The Real Deal

Everything Real Estate in the San Fernando Valley
Wednesday October 28, 2020
HOMEOWNER’S INSURANCE – WHAT ISN’T COVERED?

Over the last few weeks, we’ve been talking about homeowner’s insurance a lot. Specifically, what homeowner’s insurance is, why it’s a good idea (and mandatory if you are taking a loan to purchase a home), and what it covers. Today, we will discuss what it might not cover; sometimes it’s a good idea to purchase additional insurance coverage for these items. As an initial matter, no two insurance policies are the same; it pays to read the fine print and inform yourself of what is actually covered by your policy.

Generally, “floods” are not covered by homeowner’s insurance. Sure, it covers “flooding” from a burst pipe or something of that nature, but an honest-to-God flood caused by torrential rain is rarely covered. Living in Southern California, you probably don’t need to purchase additional coverage for floods. However, as the global climate changes, more areas of land will be flood-risks, so it would be wise to keep an eye on that as time goes on.

The vast majority of homeowner’s insurance policies do not cover earthquake damage; the California Earthquake Authority sells earthquake insurance, as do most insurance companies. Given that most Californians are within 30 miles of an active fault line, it would behoove you to spend the money now. It is also worth noting that many companies will offer you a rebate or discounted premiums if you invest in home upgrades that make your property more resilient to earthquake damage.

Most homeowner’s insurance policies do not cover damage from wear and tear, or damage caused by renovations. While most contractors have a builder’s risk policy, it is important to note that these policies only cover new construction, it does not apply to existing structures. Thus, if you are installing a new roof, you’re going to want additional insurance coverage just in case.

At the Chernov Team we understand that knowledge is power, and knowledge of how to
insure what is likely your largest asset is powerful knowledge indeed. At the Chernov Team we
know that whoever comes to the table most prepared leaves with the most, and the Chernov
Team always leaves the table with the most.

08

Stay Connected

Sign up to Access:

Exclusive private listings S.F. Valley market insights VIP events

Thanks for signing up!
By signing up you agree to our Terms & Conditions

More Blog Posts

To Love
Thursday November 27, 2020

Thanksgiving is a time to be grateful for what we have, but it’s also a time where it becomes abundantly clear yo...

Read Full Post
Thursday November 25, 2020

The Case-Shiller index, which measures the average change in value of residential real estate, suggests that not on...

Read Full Post
Thursday November 23, 2020

In normal times, winter is generally a “buyer’s market.” As we are all far too aware, these are not normal ti...

Read Full Post
Thursday November 20, 2020

Earlier, we discussed how the new construction sub-market of the real estate market was booming; today, we discuss ...

Read Full Post
Thursday November 18, 2020

Nearly every builder in the United States is seeing an increased demand for their services; this is likely because ...

Read Full Post
Thursday November 16, 2020

Unfortunately, COVID is making a serious comeback in the United States, just in time for the holiday season. After ...

Read Full Post