Whether you are closing on your first home or your tenth home, if there is a mortgage on the property, the lender will require that you purchase homeowners insurance to protect their interest. While this is often a busy and sometimes stressful time of our lives, it is not the time to overlook what is covered and what is not covered under a basic homeowners (HO) policy. There are situations that a HO policy does not cover, and other areas that may require you to add an endorsement to your HO policy to obtain the desired coverage. Here are the primary areas where losses may not be covered, or that may have limits on the coverage provided: Flood or Flooding: It is important to understand FEMA’s definition of flood: A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder’s property) from an overflow of inland or tidal waters. HO policies do not cover flood. Purchasing a flood policy will help provide coverage for this type of water loss. Water/ Sewer Backup: This type of loss typically occurs when there is damage to the sewer line running from your home to the main line owned by your city or township. Sometimes this causes raw sewage to back up into the home. This can also happen when water backs up through a drain or a sump pump and can include damage by a sump pump’s failure. Water/Sewer Backup coverage can be added by endorsement onto a HO policy. This is especially important for clients with finished basements. Sinkhole: A sinkhole is when a hole forms in the ground due to water dissolving surface rock. Often the surface rock is limestone, which is easily worn away by the movement of water. Sinkhole coverage can be added by endorsement onto a HO policy. Jewelry: Jewelry is covered under your Personal Property coverage provided under the HO policy, but there is typically a limit of $1500/$2500 for theft of jewelry. By: Kellie Eschbach, Personal Lines Manager Homeowner’s Policy: What do you mean I don’t have coverage?
These tools used for financial gain can be covered by a commercial inland marine policy. Cyber Liability: If you release a computer virus, slander someone online or partake in cyberbullying, your HO policy does not cover that. While many home policies provide some coverage for identity theft, Cyber Liability is a separate coverage. Most carriers do offer a cyber liability endorsement which can be added to your HO policy. If any of these examples have you wondering if you have coverage or what it will cost to obtain or increase your coverage limits, reach out to your personal lines insurance consultant, and ask your questions! Taking the time to review your HO policy and ask your questions could mean the difference between a covered and an uncovered claim!
In Memoriam: Jade Simmers, Director of Risk Management
August marked a tremendous loss for our HMK Insurance family with the sudden passing of Jade Simmers, Director of Risk Management. Jade’s impact went far beyond our office. He was an outstanding collaborative teammate, working with our HMK Insurance office, with surrounding Alera Group locations, and with national safety groups during his time with our company. He was an empathetic, humorous, and deeply authentic conversationalist. The breadth of his risk and safety expertise made him a sought-after expert across the United States and an incredible resource to his colleagues and our clients. Jade’s legacy will continue to live on, even in his absence. Our hearts go out to his colleagues, family, and friends during this difficult time. We will all remember Jade for his incredible professionalism, down-to-earth sense of humor, and dedication to safety.
In most cases, you can endorse the HO policy with an increased amount of blanket coverage for jewelry. You can also schedule jewel- ry which would assign a specific value to individual pieces or items. Tools: Tools are typically covered under Personal Property coverage. In the event that you use your tools for financial gain (employment, side gig, or hobby), the HO policy does not cover them. If a garage is full of tools that are used to maintain your home, they are covered. But if you use them for work each day, or they are stolen out of your vehicle because you transport them back and forth each day, they are not covered. Page 5
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