A shocking 41% of homeowners think that if they discover mold in their home, their homeowner’s policy will cover it. Most often, coverage for mold abatement is handled as a separate rider on your insurance policy. Not knowing this and making the assumption that you’re covered when you really aren’t can cost you tens of thousands of dollars in out of pocket expenses. The same is true for flood insurance and earthquake insurance and as we’ve seen multiple times following a major disaster, many people who felt secure thinking they were covered, actually weren’t and had to make costly home repairs on their own.
Consequently, your homeowner’s policy may cover things that you never even thought about. For instance, if your car is broken into and something is stolen, your homeowner’s policy may pay for the reimbursement costs of your loss. That’s pretty strange when you think about it, especially since if your car window is broken, it would be your auto insurance policy that would pay, not your homeowners.
The moral of the story is to be sure to carefully look over the details of your insurance policies to make sure that you have adequate coverage in case of a worst case scenario. Don’t make the assumption that you’re covered, because if you’re not, it could cost you everything.
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Ken Bryant, Real Estate Broker 