Homes are our greatest assets. Losing a home to disasters and other tragedies can be pretty traumatic so purchasing a homeowner insurance policy is the best way to protect yourself. Before signing a contract, you must be smart about getting an insurance policy. There had been several complaints about the insurance policy industry and educating yourself about what you’re getting into is the best way to protect yourself from being cheated.

Karen McArthur, spokesperson for an insurance policy consumer body, urges homeowners to be smart about purchasing homeowners insurance policies. ìDo not be taken by signs that promises very low premiums and comprehensive coverage for their contractsî, she says. McArthur asserts that these types of contracts usually have a catch, usually in staggered payouts and extremely difficult recovery process. She also says that homeowners must be aware of the exceptions that most policies cover.

1. Floods.

Homeowner insurance policies usually do not cover floods. You need to purchase separate, special flood insurance. This type of policy is being offered by the federal Flood Insurance Program and is available for both homeowners and renters. If you live near the sea or by the riverbanks, flood insurance is necessary. Also, insurance companies also suggest flood insurance for homeowners living in flood zones or low level areas. If there is also a possibility that your home can be flooded by melting snow, flood insurance is also practicable.

2. Earthquakes

This is also specifically excluded by most homeowner insurance policies. Houses that stand on fault zones requires a separate policy, this is required for people who purchases homes on a mortgage loan. Like flood insurance, this is available for both renters and homeowners. California is prone to earthquakes so majority of insurance companies provide earthquake insurance for homeowners in this area.

3. Maintenance damage

Homeowner insurance policies do not condone the acts of the homeowner in poorly maintaining the home. Houses, in order to be insurable as well as charged with reasonable premiums should be in good condition as well as equipped with security alarms (especially in high-crime neighborhood) and sprinkler systems. Repairs are the homeowners’ sole responsibility except when they are covered under the insurance policy contract.

4. Windstorm

Some policies also expressly exclude windstorms from their policies. Some states are more prone to these natural disasters and these events can actually ruin and destroy houses. These will require a special insurance policy. This is optional of course, but if you live in areas with high probabilities of storms, this type of policy can help you a great deal.