Homeowners and Renters Policies
Homeowners and renters policies generally cover your home and its contents against loss due to specified risks, known as perils. Some policies cover only specific perils, while others may be “all risk.” For a more complete explanation of what homeowners and renters policies cover, see our homeowners tab and its links to more information.
Whether a policy is for specified perils or all-risk, there are certain types of loss that are specifically excluded from coverage. Among the exclusions are not only maintenance problems for your home, but some types of natural disasters as well. So what is covered and what is not covered?
Wind Loss – Tornado, Hurricane, and High Winds
Losses due to wind are considered basic coverage and are therefore covered under virtually all types of homeowners and renters policies.
Earthquake losses are specifically excluded from most homeowners and renters policies. Coverage may usually be purchased as an additional coverage, so check with your agent or insurer. For more information on earthquake preparedness in Kentucky, see here.
Flood losses are also specifically excluded from most homeowners and renters policies. Coverage can be obtained from the National Flood Insurance Program or from a limited number of private insurers. If you live in a flood plain, your mortgage holder will likely require you to obtain flood insurance.
Given the devastating losses that can often occur with one of these natural disasters or with a fire loss, homeowners and renters should consider preparing a home inventory. Information can be found by clicking the link on our front page or here.
The Insurance Information Institute also has an excellent publication “Settling Insurance Claims After a Disaster” which can be found here. You can find find some good general information on flood insurance here.
Coverage for the damage to your car is generally separated into two types of coverage, collision and comprehensive or “other than collision.” Natural disasters such as wind loss, flood, and earthquake generally cover your car under the “other than collision” coverage. Collision and “other than collision” coverage must be purchased separately.