You are probably really busy right now. December is filled with family get-togethers, shopping for presents, wrapping those gifts, and many celebrations. Now is also a good time to dig out your insurance policies, and check them over. They might not cover what you think they do!
Christmas trees and decorations pose potential dangers that you wouldn’t face at other times of the year. Trees that are placed too close to a heat source can ignite. Christmas trees that are covered in strands of lights that are frayed, or that are all plugged into an overloaded outlet, can also go up in flames. Even outdoor lights could be a fire hazard.
A good place to start checking on your insurance would be with your homeowners policy. If a fire happens, will your insurer give you the market value for your property that was destroyed, or will give you the replacement cost for those items? There is a big difference between the two! Take the time to understand which one your policy will reimburse you with.
At some point in the past, you probably gave an itemized list of your property to your homeowners insurance company. The point of doing so is to establish proof that you truly did have those particular items before a fire happened. Check over that list to see if it is still accurate. If you got a new TV, or upgraded your computer since that list was created, then you will need to update it with your insurer right away.
There are certain situations that most, if not all, homeowners insurance policies will cover. If there is a storm, and your home gets damaged by wind driven rain, your homeowners policy should cover it. It will also cover the damages from trees, or other falling objects, that happen due to a storm.
Snow and cold, Winter, weather also can cause damages that your homeowners policy will cover. If your roof caves in due to the weight or the ice or snow that is sitting on it, your policy should cover the damages for that. If the snow causes your garage to cave in, that damage should be covered, too. If your pipes freeze from extreme cold, that would be covered as well. (However, it won’t be covered if the insurer feels your pipes froze due to your own negligence).
Do you have flood insurance? Some states and counties have redrawn their flood maps. It is possible that you now need to purchase this type of insurance, even if you didn’t have to when you first moved into your home. This would be a good thing to pick up in January, long before flood season hits.
If a tree falls onto your lawn, or backyard, but doesn’t actually hit or damage your home, then your homeowners policy won’t cover the cost of removing that tree. It also won’t cover flood damage or water damage that happens when your storm drain backs up, or if your sewers back up. Check to see if your policy covers spoiled food that was in your freezer when your power went out. Not all of them will!
Image by Drew Saunders on Flickr