Understand What's Covered!
The insurance industry identifies a cause of loss, such as fire or theft, as a "peril." Insurance only applies when your policy covers the peril that caused the loss. Be sure to check your policy to see which perils it covers, and in what situations. A homeowner's policy may cover different perils for the house and for personal property. The policy may also have different deductibles based on the peril.
Always check your individual policy for specific details. For example, basic property insurance policies may not cover losses caused by flooding, wind, earthquakes, terrorism, or pollution.
Flooding is the most common and costly disaster in the U.S.! Talk with your local insurance agent if your property is at risk of flooding or mudflows, including flooding caused by earthquakes or hurricanes. Other flooding impacts, such as mold or mildew damage, can also be covered with basic property insurance, but may have a limited amount of loss payable. A yearly check in with your local insurance agent is recommended!