Wouldn't life be grand if you could just go about the business of enjoying life inside of the home of your choice without worrying about everything that could go wrong? However, this isn't the reality. The saying "life happens" means that bad and unexpected things are going to happen and usually at the worst moments. This is why it's important to make sure that you have financial protection in place. Liquid cash savings is crucial and helpful, but there are always those calamities that arise that costs more than what you've saved. This is when a home insurance policy could make the difference between having funds to resolve your problems and financial ruin. While it's important and often legally required to keep a home insurance policy on your residential home, it's equally important that you understand what types of issues, or perils, are covered by your policy. There are quite a few perils that aren't covered, so before you file a claim, take a look at a few issues that your insurance carrier will not compensate you for, even if you have a current home insurance policy enforced.
An earthquake cracked your home's foundation or caused your home to crumble
To be clear, it's not your fault (or any homeowner's fault) when a natural disaster such as an earthquake causes damage to structures. But most home insurance policies won't cover the costs of damage due to earthquakes, especially if the residential property is located in an earthquake-prone region. This is because the occurrence of earthquakes in certain areas is so common and the devastation is so great that the insurance carrier would become insolvent if it tried to financially compensate earthquake damage claims.
Termites have been feasting on your home's wooden frames
Another peril that typically isn't covered by homeowners insurance is termite damage. First, you as the homeowner are responsible for having your structure and your property inspected for the presence of termites. This should be completed before you make your home's purchase as part of the move-in inspection process. It's also your responsibility as part of maintaining your home to schedule regular pest control inside your home and around your property. Not doing any of these equates to neglect in the eyes of your insurance carrier. Carriers don't provide rewards for property neglect.
A power outage caused all of your food to go bad
This is another frustrating and expensive occurrence that home insurance policies often don't provide coverage for, even though power outages are often beyond your control. The only exception is if your insurance carrier provides home insurance coverage in the instance of certain types of perils, such as lightning damage or a tree falls on your roof. But this varies by carrier, so check with your agent or your policy before you file a claim.