Will Home Insurance Cover It? The Top 7 FAQs of Home Insurance Claims

Home insurance can be confusing, especially when it comes to understanding what is and isn’t covered. To help you navigate the complexities, we've compiled answers to the top seven frequently asked questions about home insurance claims. From water damage to solar panels, we’ll cover the basics of home insurance coverage.

What are the 7 Most Frequently Asked Questions About Home Insurance Coverage?

1. Will home insurance cover water damage?
2. Will home insurance cover a roof replacement?
3. Will home insurance cover dog bites?
4. Will home insurance cover solar panels?
5. Will home insurance cover tree removal?
6. Will home insurance cover foundation repairs?
7. Will home insurance cover HVAC?

What are the Components of a Home Insurance Policy?

In order to answer the above questions, we need to have a basic understanding of the type of coverage on your home. 

• Liability Coverage: Protects you and the members of your household financially in the event you are sued for property damage or bodily injury. 
• Dwelling Coverage: This covers the physical structure of your home from covered events. 
• Contents Coverage: The coverage for your belongings. Everything inside your home including furniture, electronics, appliances, clothing, jewelry, bicycles, and much more. 
• Outbuilding Coverage: The coverage for the physical structures on your property that are not attached to your dwelling. This includes sheds, fences, detached garages, and other buildings that are not residences on your property.  

If your home is mortgage-free, you are not required to maintain home insurance, but it is strongly advised. All home Insurance policies will have a foundation of liability coverage at the very least with mandatory dwelling coverage if you hold a mortgage. 

1. Will Home Insurance Cover Water Damage?

Water damage is one of the most common reasons for home insurance claims. Water coverage can be very area-dependent. If your area is prone to flooding, getting water coverage can be very expensive or even completely unavailable. It’s also important to note that there are different types of water damage that can occur.

Standard water coverage covers things like burst pipes or appliance failures. Most home insurance policies will have a provision included to cover this type of water damage.

Overland water is water that flows in from the ground surface and enters your home from heavy rainfall, rapid snow melt, or overflowing water bodies (lakes, rivers, ponds, etc.). Depending on your area and your insurance provider, you may not be covered for overland water damage.

Sewer backups are pretty much exactly what they sound like, a backup from the sewer. These can be caused by clogs or blockages in the pipes, tree roots, heavy rainfall overwhelming the sewer system, or municipal system issues. Sewer backup insurance can also be area and carrier-specific, although the coverage is typically more readily available than overland water.

Depending on the type of water damage, the area you live in, and your insurance provider, you may have coverage limited or no coverage at all. Ask your insurance agent or broker for information on your policy.

An insurance brokerage works with multiple insurance companies with different data and risk appetites. If one company isn’t offering you adequate water coverage, they may have another company that might be a better fit for you.

2. Will Home Insurance Cover a Roof Replacement?

Dwelling coverage on home insurance usually covers roof repairs or replacement if the damage is caused by a covered event, like storms, fires, or falling trees. However, situations like wear and tear, age, or pre-existing damage to a roof, are not covered. If your roof is just old and needs to be replaced, your insurance company will not cover the cost of a new roof.

3. Will Home Insurance Cover Dog Bites?

Liability coverage extends to your pets (with some exclusions for exotic pets). Yes, if your dog bites someone or destroys someone's property, the damages from a potential lawsuit would be covered by your home insurance's liability coverage. Bear in mind that if your dog bites someone, insurance cannot protect your dog from the consequences that come with that, only the owner's financial impact. 

4. Will Home Insurance Cover Solar Panels?

Solar panels are typically covered under the dwelling portion of your home insurance if they are permanently attached to your roof. Damage from perils like storms or fires are usually covered. However, it’s crucial to notify your insurer when you install them to ensure they’re included in your policy's coverage limit. Some insurance companies will not insure a home with solar panels if you're making money or earning a bill credit on your power bill. However, each company is different in how solar panels are insured, talk to your broker or agent about the specifics of your policy coverage. 

5. Will Home Insurance Cover Tree Removal?

Home insurance may cover the cost of tree removal if the tree falls due to a windstorm, and damages a structure on your property. If the tree falls without causing damage, or due to poor maintenance, removal is usually not covered. Preventative tree removals are not generally covered by insurance companies. 

6. Will Home Insurance Cover Foundation Repairs?

Foundation repairs are generally not covered by home insurance unless they’re caused by a covered event, like an earthquake (if you have earthquake insurance) or severe water damage from burst pipes. Damage from poor maintenance, settling, or construction defects is typically excluded.

7. Will Home Insurance Cover HVAC Systems?

Furnaces and air conditioners are covered under your dwelling coverage. HVAC systems are covered if they’re damaged by fire, lightning, vandalism, or other covered events. If your HVAC system breaks down due to age or regular wear and tear, it won’t be covered.  

Conclusion

In order to get the best and most well-rounded coverage for your needs, it's best to work with an experienced insurance agent or broker. Ask as many questions as you need to to feel comfortable with your insurance coverage.

If you'd like help from an insurance professional, click the link below.