Frequently Asked Questions
How does my policy really work?
Don't wait until it's time to make a claim to get a full understanding of how your insurance works.
The following definitions explain a few of the major building blocks of home insurance.
Acts of God
Acts of God are considered natural disasters that could not have been reasonably prevented or avoided. Most standard forms cover the perils of hurricanes and tornados. Lightning and hail are classified as named perils. Coverages for floods or earthquakes are not automatic in standard policies, but in most cases may be available for an additional premium. Flood or earthquake coverage is likely to be more expensive and difficult to obtain in areas susceptible to these perils.
Deductibles are the amounts you pay to cover a loss before you are entitled to payment by your insurer. Just about every policy has a deductible, usually ranging from $500 to $5,000. Deductibles are designed to discourage small claims, since the purpose of insurance is to protect you from catastrophic losses, not minor inconveniences.
Quite simply, exclusions are items, perils or situations that are not covered by your policy. Your insurer might exclude anything from long-term mould damage to natural disasters, computer data or high-speed watercraft. Other common exclusions include avoidable damage from termites or rodents, water seepage, frozen pipes, intentional damage and high value items such as art and jewelry.