Home insurance is not a legal obligation. However, many times it is a great thing to have on your side as the risks are increasing every year for home owners. The coverage of the home insurance policy is very important. This is because you want to know exactly which the risks covered are.

Any home insurance policy has exclusions. You should be aware of this and read it carefully before you sign anything. These exclusions are grouped in 5 big categories. These categories are presented below in this article in order to help you make an informed decision when purchasing such policies:

a) The environmental factors are very important for home insurance companies. For example, if your home has an increased risk of being flooded chances are you will have to pay a high premium or this may be one of the exclusions.

b) If an accident happens because of a domestic animal, chances are you will not be covered. If your property is damaged by a cat or a dog you will have to pay for reparations from your own pocket. Wear and tear factors are also in the exclusions list.

c) The occupancy factor is not known by everybody. If your home is not occupied for more than 30 days in a year, you will not be covered if something happens. A lot of people do not know anything about this policy. This exclusion exists in every company’s policy but some companies accept 60 days a year non occupancy.

d) External influences are exclusions too. This is due to the late happenings in the world. One of these external influences is terrorism. Pollution and war are other aspects that are considered to be external influences and you can’t fill a claim on this basis.

e) Deductibles or excess is another aspect you should definitely be aware of. If you choose high deductibles, you will have to pay small amounts from your own pocket but the cost of your premium will be lowered. If you choose low deductibles, you will have to pay smaller amounts if something happens but the cost of your insurance will be higher.

These exclusions have to be carefully read and fully understood by you prior to signing up with a home insurance company or another. Usually, all of these exclusions are in the offers of these companies but they may differ a little depending on the company’s policy. The terms and conditions of your agreement should also be read because you want to know every aspect of your insurance, not just the price.

In conclusion, knowing these exclusions will help you know exactly what you are covered for.