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"All Perils" Insurance Does Not Cover All Perils

Most homeowners today have a property insurance policy that is commonly referred to as an "All Perils" policy.  Truth be told the policy does not come close to covering all perils

With the recent rash of earthquakes in eastern CT (about 12 in about a week), my wife has been bugging me to check our policy to find out if we are earthquakeprotected against earthquakes.  We are not covered and we are not alone.  Every part of the country is affected by one natural or geological disaster of one type or another, and most natural or geological disasters are not covered by what would be deemed a "standard homeowner's insurance policy".

Some things that you might not realized are excluded from coverage include sewer backup or sump pump overflow.  If you have a home business, your business equipment is not covered, and the liability insurance offered as part of the standard homeowner's policy does not cover guests to your home for business purposes.  If your client or customer falls on the front walk while visiting you on business, the insurance company will not provide protection.

Some of the common things that are not covered that most people are aware of are floods and hurricanes and tornadoes.  Most policies do cover wind damage, but there is a fine line during a hurricane or tornado as to what damage might be caused by what, and a lot of these coverage issues result in litigation between the homeowner and the insurer as to what is really covered based upon the cause of the damage.

There is an excellent discussion of geological disasters on the website, geology.com and an good of explanation of what is and what is not covered under most insurance policies.  The website also provides maps from which it can be determined what typr of disater is common in what area of the country. 

Some conditions which you may not think about but which can cause  extensive damage to a home include "expansive soils" or "subsidence".  Expansive soils are soils that contain a lot of clay, and the soil expands when wet and contracts when dry.  This situation can cause foundations to shift and of course result in major damage.  Subsidence is less common and is caused by subsurface mining that can result in sink holes and other shifts in the soil which again, can cause foundation damage. 

In addition to all the other inspections and testing that a home buyer does, should they be advised to have a soil test to determine if the home is sitting on unsteady soil?  Certainly, a buyer should be advised to carefully determine what is and is not covered under the insurance policy they purchase so that the natural or geological disasters in their area are covered and that they are fully protected.

Your Dedicated Mortgage Consultant!

Randy Kirsch, NMLS #1012303

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 X120

Fax: 860 647-8940

Cell: 202-827-6434

Email: randy@righttracfg.com



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The blogs written and published by Randy Kirsch are not in any manner whatsoever to be considered as legal advice or as a legal opinions.  If you have legal questions or concerns regarding any area of real estate law or mortgage law you are advised to consult a licensed, competent real estate attorney in your local area to address your concerns and questions.


Randy Kirsch does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.


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