A homeowners insurance policy extends a broad umbrella of coverage, shielding you from some natural disasters, theft, and even liability lawsuits. However, as many property owners only discover when they file a claim, standard insurance plans don’t cover everything. Understanding these limitations will help ensure you get the coverage you need.

3 Situations Standard Homeowners Insurance Plans Don’t Cover

Tenants’ Belongings

While homeowners insurance includes personal property protection for your belongings, this coverage only applies if you live in the house. If you rent out all our part of your house, home insurance protection won’t cover your tenants’ property in the event of a fire or other disaster. They will need a renter’s insurance policy to protect their belongings after a covered event and to protect themselves from liability cases.

High-Value Items

Most homeowners insurance policies include personal possession coverage equal to 50-70% of the home’s value. So, if your home is worth $150,000, approximately $75,000 of your belongings will be covered. For most families, this may be enough, but if you have especially valuable artwork, jewelry, or electronics, additional protection may be necessary.

Damage From Earthquakes & Floods

Homeowners insurance protects against a wide range of threats, but most policies specifically exclude damage related to water or movements of the earth. If you live in an area prone to earthquakes or floods, supplemental coverage plans will shield you from these threats.

Since 1876, the professionals at Pella Mutual Insurance Company have provided northeast Wisconsin with affordable coverage tailored to their needs. As a mutual company, they’re wholly owned by their policyholders, so you can be sure they’ll always work to protect your interests. Visit their website for more on their products and services, or call (715) 754-5039 to request a homeowners insurance quote. Follow their Facebook for updates and news.