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Kip Tips

Do You Know What Your Homeowners Policy Covers?

A pipe under our house recently broke and our basement flooded. We didn't file a claim with our insurer because the cost of the repair was less than our deductible (see Don't Rush to File Insurance Claims). But our policy would have covered the damage if the cost had been higher.

However, our insurance agent told me that we wouldn't have been covered if it had been a slow leak that had caused damage over time -- rather than a sudden break. You'd think your insurer would pay to clean up the mess created by water or a sewage backup, but most policies don't provide this protection. And there might be a lot more your policy doesn't cover.
That's why it's important to read the fine print and fill any coverage gaps that could cost you big. See the stories below to learn more.