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Shelter Insurance

Know Your Coverage

Mindy Hays, Shelter Insurance Agent

When it comes to insurance, assumptions can cost you. Take some time to read your policies and learn about how insurance coverage works.  Test your current knowledge with this quiz.

Coverage Quiz:                                     

  1. You purchased homeowners insurance and recent heavy rains cause flooding in your home. Are you covered?

    a. Yes
    b. No
    c. It depends…

  2. Your business has a fence around the perimeter. Overnight, a car drove through the fence but the driver drove away and you have no idea who it was. You purchased a general liability policy for your business instead of business insurance. Are you covered?

    a. Yes
    b. No
    c. It depends…

  3. You have homeowners insurance, and a family member who lives in your household accidentally set the house on fire. Fortunately, nobody was hurt, but the house burned to the ground. Are you covered?

    a. Yes
    b. No
    c. It depends…

  4. An animal of some sort seems to have invaded your attic and tore up your insulation, damaged your attic fan, and more. Are you covered?

    a. Yes
    b. No
    c. It depends…

  5. You built a house high on a hill that overlooks a lake. It was in a subdivision on a cul-de-sac. The ground below the house began to shift, and the house will likely fall off the cliff soon. Are you covered if it does?

    a. Yes
    b. No
    c. It depends…

Answers:

The answers to all of the above questions are C. Your individual coverage depends on what you bought, so be sure you understand your coverage. Read your policy thoroughly, and if you have any questions, discuss them with your agent. Speaking in general terms, however, the following answers may apply to the above situations:

  1. B – Many people assume their home insurance policy will cover flood damage, but most do not.  You may also think that your house must be located in a high-risk flood zone to get flood insurance. However, since floods can happen anywhere, at any time, you may consider purchasing a federal flood insurance policy to protect your home or business.
  2. B – General liability insurance for your business generally helps you pay if your business or employees accidentally caused an injury or damaged someone else’s property. A business insurance policy likely covers property loss caused by someone else, including vehicles.
  3. A – The key word in this scenario is “accidentally.” If a house fire is caused by an accident (as defined in your policy) it will likely be covered. Although all policies cover some intentionally set fires, if the fire is intentionally set by or at the direction of the insured, the damage is not covered.
  4. C – The answer to this varies from insurance company to insurance company and policy to policy. In many cases, it depends on what type of animal it was. Most don’t cover damage done by vermin or rodents and other similar critters.
  5. B – Most insurance companies will not cover damage to homes or their patios, fences, foundations, or slabs if it is caused by any type of ground movement.

It’s always a good idea to review your insurance policies with your Shelter agent to be sure you know what is covered and what isn’t so you can avoid unpleasant surprises. You should also ask your agent to set up an annual review of your coverage. Marriage, divorce, the birth of a child, moving, remodeling a house, and buying big “toys” like ATVs, pools or trampolines are all changes that may affect your coverage.

The product information contained in this article and on this website is informational only and not a statement of contract. All coverage options are subject to the provisions of the policy purchased and details of the policyholder’s situation.