How comprehensive home insurance coverage works
Home insurance comes in a wide variety of forms, which can quickly confuse a person if they're not familiar with the lingo of their carrier. If you're interested in getting as much coverage as possible, then comprehensive might sound like the best bet for you. We'll take you through what this policy covers and (more importantly) what it doesn't cover. We'll also tell you more about how to flesh out your policy is you so choose.
What you can expect
Comprehensive coverage typically everything that can potentially happen to your home, unless the policy specifically excludes certain events. Depending on your policy, your coverage may even extend past the limits of what you purchased. For example, if your repairs cost more than your coverage due to inflation or complexity of the repairs, you may be able to get up to a 25 percent extension. Normal policies may only cover about 90 percent of the home's value. When you consider the volatility of the market, this may not give you enough financial assistance to work with.
What isn't covered
There are several events stated in the policy that will not be covered by your policy. They usually include landslides, mudslides, earthquakes, water damage, flooding, infestation, and damage from war/government acts. However, every policy is different, so it helps to check the specifics of your policy. So, if you had mold in the walls due to a pipe burst, this will not be covered. And — as you might have expected — wear and tear aren't covered either. For instance, if your foundation warps over time, this would not be a part of your comprehensive insurance.
It's possible to purchase riders to your coverage, so you'll have specific coverage against different events (e.g., flooding, earthquakes, etc). There are plenty of reasons to evaluate the strength of your policy based on the potential costs of repairs. Mold alone can cost thousands of dollars to clean. And while insurance may not cover it for a pipe burst, it may provide some financial assistance if you had water damage from a flood plus a flood rider on your policy.
Finally, some insurance companies will work with their customers depending on the circumstances regarding the event. For example, if there was a sudden landslide, they may consider the surrounding circumstances before denying the claim.