Is a cracked foundation covered under basic homeowners insurance or will your house be condemned?

A cracked foundation is a concern for any homeowner, especially if you are not sure if the situation is covered by your homeowner’s insurance policy. While every company and policy is different and the details of your plan may vary, many insurance providers will not cover the cost of repairing a cracked foundation.

Maintenance and Poor Design

The two main reasons that a cracked foundation may not be covered in the basic policy is that you are responsible for regular maintenance on the property and the crack is usually a slow damage that occurs over time. In older houses, it may be related to poor designs and construction that do not factor in changing soil conditions, erosion or other risks.

New homes are not likely to have cracked foundations unless it relates to a natural disaster, like an earthquake.

When it is Covered

Even though many situations and cracks in the foundation are not covered by your basic policy, there are times when your insurance may cover the situation. For example, you may be covered if it is directly related to a natural disaster that is covered. If you have earthquake coverage and an earthquake caused the damages, then you may be able to make a claim.

There is also the possibility that you may be covered if the damage is caused by an unexpected and covered situation, such as a burst pipe that caused water damage.

The problem with a foundation that is cracked is the possibility to prevent or limit the damages. As a result, many basic policies will only cover the damage if it is caused by an unexpected and covered situation. Call us today to talk to an agent for more details.

When does homeowner insurance cover attorney fees in a civil suit?

There are a variety of situations that can result in facing a civil suit in Arvada, CO. When you are facing a court case, you may discover that the attorney fees are too high for your budget. Fortunately, some cases may be covered by your homeowners insurance policy.

Basic Liability Coverage

It may not surprise you to discover that your homeowners insurance will usually pay for attorney fees if you are being sued after an accident. You can expect that your neighbor or a guest who visited your home may want to take you to court after tripping on a patch of ice, a garden plant or tumbling down your stairs.

In most cases, your liability protection will cover the medical bills and other related expenses associated with an accident that took place on your property. You may also be able to pay the fees of an attorney if that individual takes you to court.

Covering Unexpected Court Cases

Even though a dog bite, slander and libel cases may not directly relate to your homeowner’s policy, it is possible that your plan will offer some solutions if you are taken to court in relation to these claims.

A false arrest, slander and libel cases are not always easy to handle. You may not know how to defend yourself if someone suggests that you have said something about them that is not true or was an attempt to harm their reputation. Your homeowner’s policy may provide some solutions so that you can hire a lawyer for the civil suit.

It is hard to determine what options are available if you are facing a court battle, but you may discover that some insurers offer solutions for homeowners that are unexpected. Contact us to talk to an agent for more information.

Can I temporarily suspend my auto insurance coverage?

There are times when you may want to suspend-auto-insurance to avoid paying a high premium or even just to avoid additional costs when you are out of town. Depending on the policy, the insurance company and the situation, you may or may not be able to suspend your plan in Arvada, CO.

Owning the Car

Generally, it is best to maintain some coverage that addresses your needs when you own a car. The minimum state requirements are the key factor to consider, but there may be situations that allow you to avoid coverage for a time, such as if you are leaving the area for an extended period of time.

Ownership means that you are responsible for the vehicle. It is best to maintain the state minimum coverage, even if you are leaving the area for a time or do not have any way to drive the vehicle.

Ask About Options

The best way to determine your options based on your situation is by contacting your insurance provider and asking a few questions. Explain your situation. For example, if you are leaving town for two or three months, then explain that you are going to be out of town and will not be driving for that duration of time. The same is true if you have a medical problem that is preventing you from driving, such as two broken legs.

Find out the options that are available based on your situation. Your insurer may put your policy on hold or maintain a limited amount of coverage.

Problems can arise when you are not able to drive your car for any reason, but that does not mean it is always appropriate to put your coverage on hold. Contact us to speak to an agent to learn more.

Do I need more than the state minimum coverage?

How much auto insurance coverage you need or should carry is determined by a number of different factors such as if your car is financed, the age of your car, and your tolerance for risk. Your state will require you to carry a minimum amount of coverage. The liability coverage that you need to purchase depends on the particular state in which you reside. The purpose is not to protect you. State minimum coverage is for the protection of other drivers if you cause them bodily injury or damage to their property.

You need more than the state minimum coverage if you finance your vehicle. Your lender will not give you a loan if you do not have full coverage (collision and comprehensive) on your vehicle. Insurance is there to make sure you will have enough money to make the necessary repairs to your vehicle if you get into an accident. Since the car is technically not yours until you fully pay off your car note, the lender has an interest in seeing that the value of the vehicle is protected.

If your vehicle is stolen, the lender will hold you responsible for the outstanding balance of your loan. If you have comprehensive insurance, any settlement check from your insurance company will first be applied to paying off the loan. If there is any remaining balance, you will receive a check in that amount. If you owe more than the car is worth, the settlement will not be enough to pay off the balance of your car loan. In that case, you will be held personally liable for the difference still owed on your car.

Even if you have clear title to your vehicle and do not owe any money to a car financing company, you need more than minimum coverage if you do not want to bear the full burden for loss or damage to your vehicle. Before you decide to go with the bare minimum insurance required by state law, think about the maximum potential loss you could suffer. If you are not willing to personally assume that risk, you might want to buy more complete coverage.