As a homeowner, it’s essential to understand the nuances of your insurance policy. We’ve compiled a list of frequently asked questions that don’t usually get asked until it’s too late to help you navigate the complexities of homeowners insurance. From home-based businesses to tree damage, we’ve got you covered!

Does Your Homeowner’s Policy Cover Home-Based Businesses?

Many homeowners operate businesses from the comfort of their homes. However, standard homeowners insurance policies typically do not cover business-related activities. This means if you run a home-based business, your equipment and inventory may not be protected under your standard policy. To ensure comprehensive coverage, it’s important to speak with your agent about any home-based businesses. We can help you find the right additional coverage that you may need. This additional coverage can protect your business assets and provide liability protection in case a client or customer gets injured on your property.

What About Tree Damage?

Tree damage is a common concern for homeowners. Whether it’s due to a storm, disease, or accidental damage, it’s important to understand what your policy covers. Typically, if a tree falls on your home or another insured structure due to a covered peril (like a windstorm), your homeowners insurance will pay for the removal of the tree and repairs to your property. However, if the tree falls and doesn’t cause any damage to a structure, your policy may not cover the removal costs.

Are Your Valuables Fully Covered?

Homeowners insurance policies often have limits on coverage for valuables like jewelry, art, and collectibles. This is where the distinction between actual cash value (ACV) and replacement cost comes into play.
Actual Cash Value (ACV): This coverage pays out the depreciated value of your items, meaning you’ll receive what the item is worth today, not what you paid for it or what it would cost to replace it.

Replacement Cost:

This coverage pays the amount needed to replace the item with a new one of similar kind and quality, without deducting for depreciation. To ensure your valuables are fully protected, consider purchasing additional endorsements or a personal articles floater, which can provide higher coverage limits and cover items on a replacement cost basis.

What If My Neighbor’s Tree Falls on My Property?

If your neighbor’s tree falls on your property, the responsibility for the damage largely depends on the health of the tree and the circumstances of the fall. Generally, if the tree was healthy and fell due to a covered peril (like a storm), your homeowners insurance would cover the damage to your property and the removal costs. If the tree was dead or diseased and your neighbor neglected to address it, their liability insurance may come into play. It’s a good practice to regularly inspect trees on your property and address any potential hazards.

Does Homeowners Insurance Cover Mold?

Mold damage is a tricky area in homeowners insurance. Most standard policies provide limited coverage for mold damage resulting from a covered peril, such as water damage from a burst pipe. However, mold that results from long-term neglect or maintenance issues is typically not covered. To protect your home from mold, it’s crucial to address any water leaks or moisture issues promptly and perform regular maintenance. Some insurance companies offer mold endorsements that provide additional coverage for mold-related damage.

Understanding the specifics of your homeowners insurance policy is crucial for ensuring your home and valuables are adequately protected. If you have any further questions or need assistance with your policy, don’t hesitate to reach out to us at Stoller Insurance Agency. Our team is here to help you navigate the intricacies of homeowners insurance and ensure you have the coverage you need.

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