Home/Renters/Condo Insurance Frequently Asked Questions (FAQs)
What types of water damage does my policy cover?
Does my homeowners policy cover flooding?
What is considered a flood by insurance companies?
Do I need earthquake coverage?
How do I know if my home has replacement cost coverage and if it is insured for full value?
Is my bike or car covered by renters insurance?
I have property in a storage unit. Is this protected by my homeowners policy?
I unexpectedly received a check from my insurance company.
Should I cash this check?
What types
of water damage does my policy cover?
The most common losses are
dishwasher leaks, burst pipes or water damage from other appliances. This
coverage does not provide protection for the cause of the leak itself, only the
loss it creates. For example, if your dishwasher leaked and caused damage to
floor, the floor would be covered but not the dishwasher.
Talk with your
agent if you are concerned or need clarification about this protection. There
is no protection for flood damage (see the following two FAQs) with this type
of policy; flood insurance must be purchased separately. And remember, your
deductible is applicable to any loss.
Helpful Hints to Prevent
Water Damage:
- Check your plumbing and heating systems once a year.
- Schedule regular maintenance for your washer, dishwasher, swamp cooler, water heater and ice maker.
- Don't leave the dishwasher or washing machine running while you are away from home or headed to bed.
- If you are planning to be away from home for any length of time, turn off the water to your washing machine (metal hoses help, too) or to your home.
- When you are converting from the heating system to the cooling system, check all components for leaks or corrosion - remember, if the cooling system sits on your roof, it can cause extensive interior damage with just a small leak!
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Since the Texas mold calamity, insurance companies are taking a stiff look at any water loss, whether it occurred at your home or one you are planning to purchase. Remember, preventative care is the best solution.
Does my homeowners policy cover flooding?
Unfortunately, many homeowners find out too late that their homeowners policy does not cover flooding. Flood insurance can be purchased through more than 80 participating insurance companies that write and service policies through a special arrangement with the Federal Insurance Association (FIA). Flood coverage for contents is also available to individuals who rent apartments and homes. National flood insurance protects your most valuable assets your home and belongings.
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Federal disaster assistance will pay for flood damage.
Fact: Before a community is eligible for disaster assistance, the President must declare it a federal disaster area and make that assistance available. Federal disaster assistance declarations are issued in less than 50 percent of flooding incidents. The premium for an NFIP policy averaging a little more than $400 a year is less expensive than interest on a federal disaster loan (which must be paid back with interest). Plus, if you are uninsured and receive federal disaster assistance after a flood, you must purchase flood insurance to remain eligible for future disaster relief.
What is considered a flood by insurance companies?
The National Flood Insurance Program (NFIP) defines a covered flood as follows: A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder's property) from:
Overflow of inland or tidal waters; orTo top
Unusual and rapid accumulation or runoff of surface waters from any source; or
Mudflow; or
Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.
Do I need earthquake coverage?
As with flood insurance, a homeowners policy does not cover damage from earthquakes. Earthquake coverage is an optional coverage. You'll need to consider a number of factors when deciding whether this type of coverage is appropriate for you. Every carrier has varying coverage, as well as different pricing. Talk with your agent to see what options are right for your needs. Earthquake coverage can be endorsed onto most homeowners' policies.
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How do I know if my home has replacement cost coverage and if it is insured for full value?
As a homeowner, you want to be sure that your home is insured to full value to ensure enough coverage to rebuild it with like, kind, and quality materials in the event of a loss. This is done by working with your agent to review the many factors concerning the uniqueness of your home. Replacement cost is what it would cost you to rebuild your home, without depreciation, up to the limits of the replacement value of your home. Some insurance companies may also offer extended replacement cost which extends your coverage above the limit in your policy. Your home must meet each insurance company's internal requirements in order for it to be eligible for extended replacement cost coverage.
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If I am renting an apartment or house, why do I need to purchase insurance? Doesn't the landlord have coverage?
Your landlord's insurance does not cover your personal property or liability exposure. It strictly protects his interest in the structure and property. Renters insurance covers your personal property and protects you against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage from plumbing. It also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet, and includes legal defense costs if you are taken to court.
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Is my bike or car covered by renters insurance?
Your bike is covered, but your vehicles aren't. You need to get separate coverage to protect your car, van or motorcycle.
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I have property in a storage unit. Is this protected by my homeowners policy?
The limit shown on your homeowners policy and the perils shown in your contract to protect your contents will also cover contents in a storage unit, minus your deductible. It is always good to compare the type and cost of protection the storage facility is offering to what you currently have under your homeowners policy for contents in storage. You may be able to obtain flood or other protection which is not covered under your homeowners policy.
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Why do I need to purchase separate coverage for jewelry (fine art, silverware, firearms, furs, etc.) when I have contents coverage?
These are just a few of the valuables that could be scheduled separately under a homeowners policy. By scheduling these types of personal property, there is no deductible and your coverage is all peril (unless otherwise excluded) instead of named peril coverage.
This coverage is definitely worthwhile and not very costly. Discuss your options with your agent for your best protection.
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I unexpectedly received a check from my insurance company. Should I cash this check?
Look on the check stub. There should be a reference as to why the company has sent this money to you. If you cannot determine the reason, it would be wise to call your agent. It is possible your policy has been cancelled and this is a refund of unearned premium, or there may have been an overpayment. Remember, no one just gives money away...verify it with your agent!
The information contained in this FAQ is intended only as an introduction to some of the products and services offered by Charter Insurance Services. Please contact one of our agents to determine how we can best serve your individual needs.
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