A
standard
homeowners
insurance
policy
doesn't
cover
what
you
think
it
does
--
not
flood
or
earthquake
damage,
not
stolen
or
damaged
vehicles
on
your
property,
not
a
break
in
the
water
service
or
sewage
line
and
not
termites
moving
in
nor
pets
stolen
away.
Many
homeowners
are
under
the
mistaken
impression
that
a
standard
homeowners
policy
provides
more
insurance
protection
than
it
does
and
that
could
mean
large
unexpected
out
of
pocket
expenses
--
when
you
can
least
afford
them.
The
National
Association
of
Insurance
Commissioners
(NAIC),
an
organization
of
state
insurance
regulators,
found
that
33%
of
U.S.
heads
of
household
still
hold
the
false
belief
that
flood
damage
is
covered
by a
standard
homeowners
policy
--
despite
extensive
post-Hurricane
Katrina
news
coverage
of
scores
of
homeowners
with
claims
turned
down
because
they
didn't
have
the
required
flood
insurance
from
the
National
Flood
Insurance
Program.
"Many
homeowners
learned
the
hard
way
that
their
insurance
policies
did
not
provide
flood
protection,"
said
Walter
Bell,
NAIC
President
and
Alabama
Insurance
Commissioner.
"As
we
enter
the
2007
hurricane
season,
we
strongly
encourage
consumers
in
flood-prone
areas
to
check
whether
they
are
properly
covered."
That's
not
all.
NAIC
also
found:
68%
who
think
vehicles
such
as
cars,
boats
and
motorcycles
stolen
from
or
damaged
on
their
property
are
covered,
could
get
run
over
by
unexpected
costs.
51%
who
think
damages
from
a
break
in
the
water
line
on
their
property
supplying
water
to
their
home
are
covered
will
be
swamped
in
bills
which
they,
not
the
insurance
company,
will
have
to
pay.
37%
who
think
damages
due
to a
break
in
the
sewer
line
on
their
property
that
connects
to
their
municipal
sewer
system
are
covered
are
making
a
really
foul
mistake.
About
one
in
three
who
believe
damages
from
earthquakes,
mold,
termites
or
other
infestation
are
covered,
could
wind
up
crawling
with
bills.
22%
who
think
pets
stolen
from
or
injured
on
their
property
are
covered.
Perhaps
worse
of
all
the
NAIC
survey
revealed
that
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24%
of
respondents
indicated
their
policies
insured
their
homes
for
the
actual
cash
value,
while
64%
said
their
policies
covered
the
replacement
cost.
Another
12%
said
they
did
not
know
which
type
of
coverage
--
actual
cash
value
or
replacement
cost
--
they
purchased.
Actual
cash
value
is
the
amount
it
would
take
to
repair
or
replace
damage
to a
home
and
its
contents
after
depreciation.
Replacement
cost
coverage,
the
better
option,
will
cover
the
amount
it
would
take
to
replace
or
rebuild
a
home
or
repair
damages
with
materials
of
similar
kind
and
quality,
without
deducting
for
depreciation.
NAIC's
InsureUOnline
website
offers
the
following
tips:
Add
insurance
coverage
as
you
enhance
the
value
of
your
home,
and
acquire
expensive
possessions,
such
as
furniture,
computers,
stereos
and
televisions
and
other
electronics.
Keep
in
mind
computers
and
other
high-end
electronics
may
require
special
coverage.
Alert
your
insurance
company
when
making
any
major
home
improvements
that
cost
$5,000
or
more.
Update
your
homeowners
insurance
policy
to
reflect
the
new
enhancements
and
prevent
being
underinsured.
Maintain
your
property
by
clearing
clutter
and
other
dangerous
conditions
to
reduce
the
potential
for
liability
suits.
In
many
states,
you
could
be
held
legally
responsible
for
the
actions
of
anyone
who
drinks
in
your
home
and
then
has
an
accident
in
your
house
or
after
leaving
it.
Your
policy
should
protect
you
against
lawsuits
due
to
these
types
of
liability
issues.
Backyard
items,
such
as a
trampoline,
pool,
hot
tub
or
spa
may
require
you
to
increase
your
liability
coverage
through
an
umbrella
policy.
As
you
acquire
more
valuables
--
jewelry,
family
heirlooms,
antiques,
art
--
consider
purchasing
an
additional
"floater"
or
"rider"
to
your
policy
to
cover
these
special
items.
They're
typically
not
covered
by a
basic
homeowners
or
renters
policy.
It's
a
good
idea
to
make
an
inventory
of
all
of
your
personal
property,
along
with
a
photograph
or
video
of
each
room.
Also,
save
your
receipts
for
major
items
and
keep
them
in a
safe
place
away
from
your
house
or
apartment
so
you'll
have
them
if
you
need
to
file
a
claim
and
substantiate
value.
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