Homeowners Insurance: Uncovered
My grandfather used to tell me that words are very powerful “You could tell someone that their beauty is timeless and they could hear you say that their face could stop a clock.” We seem to pay less attention to words now more than ever. Insurance, though, is a contract. This contract describes in very precise terms when “perils” are and when “perils” are not covered. Insurance is often confused for a warranty but these two protections could not be more different.
Insurance is designed to provide coverage for “perils,” or events, that “occur suddenly and accidentally” but insurance will NEVER pay for a mechanical breakdown or failure of a system or appliance. Your car insurance doesn’t buy you new tires. Your home insurance will not pay to repaint your house just because it needs to be repainted. Insurance will not pay for a mechanical breakdown of a system or appliance. The warranty on your car will fix your transmission if it breaks but would not pay for the damage to your car if you hit a deer. Insurance will not pay for the mechanical breakdown or failure of a system or appliance. (Insurance considers the concept of proximate cause. This means what starts the loss. The failure or mechanical breakdown would not be covered when it is the proximate cause. Resulting damage may be covered).
It is possible to buy warranty coverage for your home. There are ads on the radio. These are often sold to people buying new homes but your standard home insurance policy will not cover the mechanical breakdown or failure of a household system or appliance. If you have any additional questions about this, please contact your insurance professional. Need our help? Please call us at 610-933-4950.