Many people have little idea what a Homeowners Insurance in Clear Lake IA covers and does not cover. For example, even with media attention to substantial financial losses among homeowners due to flooding, some 30 percent of people don’t understand that they need to buy separate flood insurance coverage if they want this protection. That’s according to a survey conducted by a large national insurance association. Flood insurance is expensive, but it’s crucial to strongly consider buying it if the structure is at risk of this occurrence.
A typical policy for Homeowners Insurance in Clear Lake IA does cover some aspects people commonly aren’t aware of. For instance, if the electricity goes out for a long time while nobody is home and a freezer full of food spoils, insurance usually has some provision for the replacement cost up to a specified maximum. However, the policy won’t pay to replace a freezer that wears out or malfunctions due to age or another normal occurrence. It also does not pay to replace other appliances, such as the furnace or central air conditioner, unless they become damaged due to a type of incident specified in the policy. Lightning that damages these appliances may qualify as an incident covered in the policy.
Another misconception involves which homeowner’s policy is responsible if a tree falls onto a neighboring house. The owners of the damaged house, not the owners of the tree, will be covered under their policy. People typically think the tree owner is responsible due to liability issues, but that is not the case. However, if a person slips on an icy sidewalk in front of the neighbor’s home, the neighbor’s insurance may be responsible for covering medical bills and lost wages. This will depend on whether the neighbor could reasonably have been expected to know about the situation and to have dealt with it effectively.
Agents with an independent agency such as Mason City All Risk Insurance can provide details on various policy options with different insurers. That way, homeowners can learn how to get the coverage they want from a reputable insurance company at the best possible price.
