Other Free Encyclopedias » Online Encyclopedia » Encyclopedia - Featured Articles » Featured Articles: American Idols Tickets - How to Score American Idols Tickets (and How Not To!) - Where to Find American Idol Tickets to Meet Singles Free - How to Meet Singles Free

House Building Insurance - Ins and Outs of House Building Insurance - What is House Building Insurance?, What Does House Building Insurance Cover?

damage home policy covered

Home building insurance is insurance which offers protection against having to rebuild or seriously repair a house in the event of a major event like fire, tornado, storms or more prosaic problems like burst water pipes. Some homeowners buy this kind of insurance because they want to, but often it is a condition of obtaining a mortgage. Banks and mortgage providers generally insist on the purchase of house building insurance before they will agree to a mortgage as a way of protecting their own investments. Though it may seem tempting to pass on home building insurance if you are not required to get it, home owners should seriously consider it nevertheless. Though you may think the odds are slim of something devastating happening to your house, it is always possible, and you more than likely will not be able to rebuild your house out-of-pocket if the unthinkable happens.

What Does House Building Insurance Cover?

Different insurance companies and policies may define things differently, but home building insurance generally covers the more permanent aspects of your house, including permanent fixtures like the sink, and the overall structure of the house. Most policies offer protection specifically against fires, smoke damage, storm damage, third-party damage, water leakage and vandalism. Sometimes flood insurance is included, sometimes not. If you live in an area with a high likelihood of flooding, you will probably have to purchase extra coverage just for floods.

What Does House Building Insurance Not Cover?

There is often some confusion about the things that home building insurance does not cover. Many owners assume it will cover anything which damages the house, but this is not so. Anything which can be classified as normal wear and tear is not covered by house building insurance. Frost damage is often not covered, nor is destruction from war or terrorism. If you have made significant alterations to your house since you bought the insurance, adding new rooms, a garage, a completely re-done kitchen, or other significant modifications to the exterior or permanent parts of the interior, you may need to refurbish your policy as well if you want these things covered. Things you add to your house since you bought the initial policy are usually not automatically covered. You will need to contact your insurance agent and make sure these new additions are added to the policy as well. If you do these projects yourself, you may also want to check to be sure that your policy covers any damage you inadvertently do while performing them. For example, if you damage a pipe while putting in a new shower, you will need to know whether or not your policy will cover this beforehand. not after the fact.

Kitchen Sinks Undermount - Installing an Undermount Sink - Simple Steps to Install an Undermount Sink in Your Kitchen [next] [back] Ink Cartridge Replacement - What Is The Best Value: New Or Remanufactured Ink Cartridge Replacement Units?

User Comments

Your email address will be altered so spam harvesting bots can't read it easily.
Hide my email completely instead?

Cancel or