As a homeowner, you purchased homeowners insurance to give you peace of mind in case of unfortunate events, such as damages caused by severe storms, including fallen trees, but what about your chimney?
Does Homeowners Insurance Cover Chimney Repair?
No, homeowners insurance does not cover chimney repair. Insurance companies view chimney repairs as the homeowner’s responsibility. It is also your responsibility to keep up with annual chimney cleanings and inspections. The bottom line is, homeowners insurance will not cover chimney repairs regardless of how common or simple the needed repairs are, including:
- Damper repair
- Chimney cover replacement
- Masonry repair
Insurance companies believe the safe operation of the fireplace and chimney are the homeowners responsibility, including proper preventive maintenance.
What Does Homeowners Insurance Cover?
Homeowners insurance is also referred to as home insurance. Contrary to the popular belief of many people, homeowners insurance is not a luxury, it is a necessity. This type of insurance protects your home from mishaps, and most lenders require borrowers to have insurance coverage that is equal to the purchase price of the property.
Homeowners insurance covers:
- Damages to the interior and exterior of your home
- Liability for personal damages and injuries
- House or hotel rental while your home is being repaired
Damages to the interior and exterior of your home – in the event your home is damaged due to lightning, vandalism, hurricanes, fires, and similar disasters, your home insurance provider will compensate you so you can rebuild your home.
Liability for personal damages and injuries – your personal liability coverage protects you, your children, and pets from lawsuits that are filed against you. Your child may break a neighbor’s belonging while visiting. You can file a claim to reimburse your neighbor.
House or hotel rental while your home is being repaired – if you are forced to live somewhere else because your home is uninhabitable due to repairs that need to be made, you will be reimbursed for hotel stays and other temporary living expenses. This part of homeowners insurance is known as additional living expenses.
Key Facts About Homeowners Insurance
Homeowners insurance policies have general coverage options, including coverage for the destruction and damage to the interior and exterior of a dwelling. Home insurance also covers the loss or theft of your possessions, and personal liability claims.
There are three different types of home insurance plans depending on the coverage they provide, including replacement cost, actual cash value, and extended replacement cost or value.
- Replacement cost – the replacement cost of your home insurance policy covers the actual cash value of your possessions and your home without depreciation. This level of home insurance allows you to rebuild your home to its original value.
- Actual cash value – this cash value covers the entire cost of your home in addition to the value of your belongings once the depreciation value has been calculated and deducted.
- Extended replacement cost or value – also referred to as guaranteed replacement cost or value, is the part of home insurance that covers the cost of the necessary repairs to rebuild your home. This part of your coverage pays for the required repairs, even if the total cost exceeds your policy limit.
The policy rates for homeowners insurance is primarily determined by the chance of you filing a claim. Your risk is assessed by your past claim history that’s associated with your property, neighborhood, and the overall condition of your property.
How Can You Save Money on Your Homeowners Insurance Policy?
Invest in Different Alarms
Having an active security system that is monitored by a central station or an alarm system that is linked directly to a police station can reduce your premium costs by at least five percent. To take advantage of this discount, you need to provide proof that there is a security system in your home and it is active. Installing active smoke alarms can reduce your home insurance rates by at least 10 percent.
Increase Your Deductible
The higher the deductible you choose, the lower your annual premiums will be. Keep in mind, the higher deductible you select, the more money you will pay out of pocket. Make sure you choose a deductible you are okay with paying out of pocket at any given moment.
Insure Multiple Items
Most insurance companies will give you a discount when you insure more than one item, such as home and car insurance. Insure as many items as you can to receive the biggest discount. These items can be two of the same items, such as two cars on the same policy.
Home insurance covers a lot of situations, but not chimney repairs. Make sure you set money aside to ensure you can make the necessary chimney repairs as soon as possible. Prolonging repairs can result in extensive, more expensive damages. The sooner you make the needed repairs, the sooner you will have peace of mind.