5 Surprising Things Insurance Covers

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The purpose of insurance is to have protection when accidents happen. There are many perils that regular insurance policies will cover. This includes a fire, a severe storm, vandalism, and many more. 

When an accident occurs and you have insurance, then a simple call to your insurer is all that you need to get the claim process started. However, you may be surprised to learn other things standard insurance covers.

One important aspect to keep in mind about insurance is filing a claim is not always the best choice for some individuals. The reason is the dollar amount of the claim may not be much more than the amount of the deductible. Making a lot of small claims is not a good idea as an insurance company can decide to not renew a policy or remove one or more policy-level discounts.

1. Volcanic Eruptions

Many people are aware their homeowners insurance policy will cover damage caused by lighting, rain, and severe winds. However, residents in states that have active volcanoes need to be concerned that an eruption could occur. Most homeowners insurance polices will cover damage that results when there is a volcanic eruption. Coverage is also available for automobile insurance policies.

One important detail to keep in mind is different types of natural disasters are treated differently based on the event that occurs. Automobiles are typically covered when an earthquake or flood occurs. If the same events occurs to a residential home, then standard homeowners insurance polices do not apply. A rider or separate policy will be required based on the location of the home.

2. Rodent Damage to a Vehicle

Automobile insurance polices include optional coverage in the form of collision and comprehensive. If a rodent damages your vehicles wiring, then the comprehensive coverage on your automobile policy is likely to pay for any repairs. 

The reason is the damage is categorized as an “other than collision” claim that does not assign fault. If you have a vehicle that is kept outside or is in an area where rodents might cause a problem, then knowing this coverage is available is beneficial.

A homeowners policy typically does not cover damage caused by rodents as they are too common in a typical home. However, damage caused by a squirrel or other wild animal will be covered. One way a wild animal will get into a house is through a vent or opening in the roof. Wild animals typically make a nest in a home’s attic. This can lead to wiring damage and contamination of the insulation.

3. Meteorites and Falling Objects

Rocks falling from the sky may seem uncommon. However, objects falling out of the sky are typically a covered peril on a standard insurance policy. This will include an automobile policy, a life insurance policy, and a homeowners policy. 

The contents and dwelling of a homeowners policy applies when an object falls out of the sky. Your automobile is covered by comprehensive coverage. Life insurance will pay beneficiaries if a policy holder was killed by an object falling out of the sky. 

One aspect to keep in mind is the likelihood of getting hit by a meteorite or other object is very slim. However, many people may be surprised to know that are documented incidents of damage caused by meteorites.

4. Riots

Any home or vehicle that is damaged during a protest or victory celebration will be covered by regular insurance policies. This includes homeowners policies and automobile insurance policies. If you home or car is damaged by a terrorist attack, then coverage is also available. 

However, a terrorist attack may only cover damage from fire, explosions, and smoke. One important detail to know is policy coverage will not apply during war. Coverage also does not apply for a nuclear, biological, or chemical attack.

5. Dorm Room Theft

Students who have personal property stolen from a dorm room are protected as homeowners insurance covers any loss. The property in the dorm room of a student is considered to be the same as if it was in the policyholder’s home. However, coverage rules will often vary based on the insurer. 

Insurers require students to be living in campus housing, be younger than 26, and be a full-time student. One thing that is important to know is the total amount of coverage may not be more than $15,000. Coverage may not apply for students who are living off campus. You need to verify the coverage on your policy. The best option is to buy a separate renters insurance policy.

You need to read through the documents of your insurance policies to know if there are any exclusions that apply. Exclusions are perils that the policy will not cover. This includes external perils and actions of the homeowner that result in damage to their home or automobile.

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