29 Mar, 2024
2 mins read

Does homeowners insurance cover terms?

Portions of this article were drafted using an in-house application natural language generation platform. The article was reviewed, fact-checked and edited by us editorial staff.

Key takeaways

  • Homeowners insurance typically does not cover termite damage, but there are some rare exceptions.

  • Homeowners are expected to take proactive measures to prevent termite infestations, and neglect is not covered by insurance.

  • Termite bonds and warranties offer additional protection against termite damage, but they vary in coverage and limitations.

  • Early detection and prevention are crucial in avoiding significant termite damage to a home.

Even though they’re tiny, termites can cause some outsized damage. Each year, Americans spend an estimated $5 billion on termite control and damage. So does home insurance cover termite damage? Unfortunately, not in most cases — but there might be some notable exceptions. Bankrate’s insurance editorial team, which includes licensed insurance agents, is here to explain the particulars of terms and insurance and to offer some tips on how to keep them at bay.

Does homeowners insurance cover termite damage?

Termite damage is typically not covered by homeowners insurance. Bug, pest and rodent problems are usually considered preventable by your home insurance provider, and homeowners are generally expected to take proactive measures to avoid infestations. Some policies may explicitly mention that insect damage is not covered, while others may not mention insects at all. If insect damage is not mentioned in your policy, then it’s very unlikely that any kind of termite-related claim will be covered by your policy. You may want to read your home insurance policy to see if termites or insect damage are mentioned.

Home insurance companies will most likely not cover termite damage that results from neglect. If the homeowner fails to address potential entry points, the infestation would not usually be covered by

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2 mins read

Deadline approaching for some Citizens policyholders to add flood insurance in Florida

Rules for new Citizens Property Insurance policyholders is part of legislation that was passed during a special session.

Flood insurance is being required for Citizens policyholders to help solve Florida’s property insurance crisis.

Attorney Robert Davis is concerned that an active 2023 hurricane season and more catastrophic damage could result in more insurance companies pulling out of Florida, and yet another increase in Floridian’s home insurance premium. Davis says he hasn’t had a home insurance claim in more than 10 years, but his home insurance bills recently doubled.

″All of them more than doubled from January to March, and I’m not just talking just homeowners, I’m talking rental insurance, business, home,” Davis said.

One of the resolutions that were passed in the special session to help stabilize the insurance industry is the requirement that all Citizens policyholders obtain flood insurance by the year 2027.

April 1, however, is a significant date because it’s the first of several deadlines requiring customers of the state-backed insurance company citizens to take an extra step to protect their homes. New customers in an area designated by FEMA as a special flood hazard area will need flood insurance.

Existing policyholders in those areas must obtain flood insurance at renewal for policies on or after July 1.

“It’s an extra cost. And typically, flood insurance has always been one of those things that you can buy if you want it,” explained Jacksonville City Councilman Matt Carlucci, who’s also an insurance agent.

The new policy amounts will be phased in for new and existing customers over five years — and eventually all customers will need it based on property value, not just location.

  • Homes insured for $600,000 or more will need to get flood insurance by January 2024

  • Homes insured for $500,000 or more will need

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1 min read

How insurance agents can reach major carriers

Home insurance group Hippo acquired the startup at the end of 2020 and has continued the company as a subsidiary. First Connect president Aviad Pinkovezky (pictured) explained that the platform gives independent agencies a valuable way to expand their reach.

“The relationship that First Connect has with different insurance carriers allows independent agencies to get access to those carriers without necessarily meeting production volume and so on, which in many cases could be difficult to obtain,” Pinkovezky said.

Pinkovezky was previously Hippo’s chief product officer, helping it to develop technology tools and products that bring its policies and services to market. The former LinkedIn executive and ex-Israeli intelligence officer was Hippo’s first employee and helped the company enter and expand in the US homeowners’ market. He became president of First Connect in February 2022.

Now the company has more than 40 carrier partners and thousands of independent insurance agency or agent customers. Pinkovezky is focused on helping both sides of the business grow, but with an asterisk.

“The focus here is not necessarily just [growth], because you want to make sure you have the right kind of carriers that provide … the availability of the insurance product in the best way that is possible, which means they are able to provide support for the scale of agents that we have,” Pinkovezky said. “Quality takes priority over everything else.”

Beyond home insurance, First Connect also provides carriers access to agents in auto, life and commercial insurance – part of its expanded reach after Hippo’s acquisition.

Earlier in July, First Connect added Cowbell Cyber ​​to its platform – an MGA insurtech focused on providing cyber coverage to small- and medium-sized businesses.

“When I joined the leadership team of First Connect, we started to double down on growing the business, taking it

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2 mins read

Here’s what flood insurance covers and what it doesn’t

Most basic home policies do not cover floods, almost all car policies do.

FLORISSANT, Mo. — The only thing worse than dealing with water in your basement is figuring out how to pay for it.

Historic rainfall and flash flooding caused flooded basements, sewer back-ups and broken windows across the St. Louis area. Many people purchased flood insurance packages.

“I always say if you can see or hear water near your house, might not be a bad idea to get flood insurance…even if you are not in a flood plain,” St. Louis-based State Farm Insurance agent Brennen Sowa said.

Walking into his office Tuesday morning, Sowa and his team were hit with an onslaught of voicemails and calls from customers with water damage. On flood calls, he hopes the homeowner on the other end of the line has a certain type of coverage.

“Back up of sewers and drains is what we call it,” Sowa explains, “some companies call it something different, like sump pump coverage. It’s really any time water is involved and our first thought is hopefully they have this coverage.”

Sewer and drain backup is an option, but not standard for home insurance. Many lower-level floods are covered by the sewer and drain add-on, but not all.

“It has to be a backup too,” Sowa said, “So lamentable in situations like this week some people aren’t covered under their homeowners insurance and there’s really nothing they could have done differently.”

Insurance agents like Sowa recommend checking your home regularly for signs of damage, especially around the foundation.

If your home has flooded before, that does not disqualify you from flood insurance. Flood insurance is available to everyone, even if a home is located on a flood plain.

Floodwaters don’t only hit homes, often times

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2 mins read

2022 Best Cheap Homeowners Insurance in New Mexico

New Mexico homeowners insurance overview

Here are some things all New Mexico homeowners should be aware of when shopping for coverage:

The average New Mexico home costs about $248,670

The average home price in New Mexico is about $248,670, according to The Ascent’s research on average home price by state. The national average is $293,349. These below-average prices may help contribute to New Mexico’s below-average home insurance rates.

But those with larger, more-expensive homes can expect to pay more. The same goes for homeowners living in areas prone to natural disasters.

Homeowners living near the Texas border usually pay more

The five most expensive New Mexico cities for home insurance (listed in the table below) are all located near the Texas border. Homeowners who live in this area may want to take some extra time to compare homeowners insurance quotes to ensure they’re getting the best possible deal.

What are the most common homeowners insurance claims in New Mexico?

Here are some of the most common homeowners insurance claims filed in New Mexico:

Wildfire damage

New Mexico has seen some of its largest wildfires in history in recent years. These storms can be extremely costly because they can destroy entire towns, leaving little to nothing behind. Those living in wildfire-prone areas typically pay more for homeowners insurance.

There are some things homeowners can do to reduce their risk of filing a wildfire claim, like trimming away brush from around the home. But sometimes, there isn’t anything a homeowner can do to stop this kind of damage. That’s why it’s key for homeowners to review their policy’s coverage limits. It should provide enough protection to pay for a full rebuild, if necessary.

Flood damage

Monsoon season can trigger flooding or even flash flooding in New Mexico, especially in low-lying areas.

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