10 unexpected issues not covered by homeowner's insurance

7:28 AM, Nov 13, 2012   |    comments
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LITTLE ROCK, Ark. (KTHV) -- Homeowners are often unaware of just how vulnerable they are to catastrophe. Here are 10 expenses that you might have expected insurers to cover from Yahoo! Homes.

1. Flooding - Private insurance rarely covers flooding, so if you want protection you can get it through the federal government's National Flood Insurance Program run by FEMA.

2. Earthquakes - This is usually covered by an additional policy.

3. Deducibles - Deductibles are going up between two and five percent, according to the Consumer Federation of America. This means homeowners will pay more out-of-pocket before insurance kicks in.

4. Simultaneous events - The technical term is "anti-concurrent causation", but it means if two events happen at once, and one of those events is not covered by insurance, then the policy might not cover damage from either event.

5. Post-traumatic emotional support - Homeowners who experience traumatic experiences like a fire or their home is a total loss, insurance companies do not cover this kind of service. You can find help through support groups and online forums.

6. Multiple bids - Your insurance company may recommend one contractor, but the best way to get the best price for repairs is to get multiple bids from contractors not associated with your insurance.

7. Lost wages - Working to get repairs done as well as paperwork can take time away from work. Insurance companies do not cover lost wages.

8. A total rebuild - Most insurance policies have a cap that may not cover a complete rebuild of your home after a fire, for example.

9. Burst pipes - While your policy may cover damage done by burst pipes, but if the burst is due to homeowner negligence, it does not.

10. Required upgrades - If new laws require updates in undamaged parts of the home, insurance policies usually don't cover the costs. Homeowners worried about this can take out extra "ordinance or law" coverage.

(Source: Yahoo! Home and U.S. News & World Report)