Know the House rules – It’s a contract

Coaching tip: The most important part of the policy to read is the list of losses not insured. The real difficulty comes from losses that are not covered, not the losses that are covered.

There's no magic in insurance. Policies don't cover everything that goes wrong. Losses that insurance companies cover and losses that they don't cover are listed in the policy. If a claim is not covered, it's not necessarily the fault of the agent or the adjustor. Sometimes, it is simply excluded by policy language.

Here is a list of losses that are generally not covered (sometimes limited coverage) by most major insurance companies:

  • Subsurface water coming through cracks in the foundation.
  • Pipes that are leaking or seeping over a period of time.
  • Water on the surface from rain or melting snow.
  • Roots in the sewer line.
  • Mold damage.
  • Vandalism or glass breakage after 30 days.
  • Corrosion. Deterioration, wear and tear.
  • Flood.
  • Earthquake.

Some companies exclude or limit coverage for:

  • Dog bite liability
  • Ice dam damage
  • Reduced settlements for damaged roofs based on the age of the roof
Coaching tip: When you're shopping for insurance, ask the agent to pull out the policy and show you the list of losses that are not insured.