What your home policy doesn't cover

As I sit here watching the news, 10 million of our fellow citizens are under a flood watch. You may wonder how well your homeowner's or renter's insurance will hold up in a natural disaster. The answer depends on the disaster. Damage from many perils are covered by a standard policy, but a handful of perils are not and require separate coverage for protection.

Even if your insurance covers the peril, it may not be enough. Many homeowners and renters don't have adequate protection to cover all their losses. In 2019, changes to the tax law reduces or eliminates deductions for uninsured losses.

Damage from flooding and earth movement, which includes earthquakes, mudslides, landslides, sinkholes and mine subsidence, are excluded from homeowner's, condo and renter's insurance.

To get flood and mudslide protection, you must buy a separate policy from the federally funded National Flood Insurance Program or a private insurer. You must also buy separate coverage for your possessions; these are not automatically included in a flood policy. Flood insurance rates are based on the flood zone you live in. These zones were determined by the federal government and have been updated within the last 10 years. You may also be required to get an elevation determination survey. This survey will help determine your exact exposure to flooding and can raise or lower your flood premium.

Fortunately, floods do not occur every year. Unfortunately, some people forget they do occur and let their flood insurance lapse or fail to update their coverage. Faced with a higher number of bank foreclosures because of lapsed flood insurance, the federal government requires all federally insured banks that issue a mortgage to require the mortgagee to purchase flood insurance. If a bank requires you to purchase flood insurance, it must provide all the information, such as the flood zone you are in, to you to make the process easier. Please remember the bank is only going to require enough coverage to cover the amount of your loan.

For earthquakes, you may buy a separate policy from a private insurer or some private insurers may offer endorsements to your current home policy.

Some home insurance policies may also exclude specific weather events or require higher deductibles for perils such as windstorms. Read your policy or ask your agent if these restrictions apply to you.

The danger of mine subsidence is not new to someone who has lived in Western Pennsylvania. When a mine is active the mining company is usually responsible for any damage caused by the operation of the mine. Once mining is completed, the property owner needs to purchase mine subsidence insurance. Coal mining in Pennsylvania began in the mid-1700s. There are hundreds of closed mines in this side of the state. Contact your insurance agent, who can determine if there is a mine under your property. Mine subsidence insurance is provided by the state of Pennsylvania and can be purchased through any licensed agent.

I have mentioned in previous articles that home insurance policies have limits on items such as jewelry, guns, coins and other collectibles. To insure your valuables, you may need a personal articles policy (PAP). These policies are designed to insure single items or multiple items of value. One of the important feature of these policies is that they are written on an all-risk basis, meaning your valuables will be covered for practically everything that could happen to them.

Lastly, limits for liability in your home insurance and auto policy may require you to purchase a Personal Liability Umbrella Policy (PLUP). This policy will increase the amount of personal liability coverage you have on your home and autos. Talk to your insurance agent to find out what gaps in coverage you may have.

Bob Hollick is a State Farm Insurance agent based in Washington. His column appears every other Friday in the Observer-Reporter.