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Will Insurance Pay to Replace Entire Floor?

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A dwelling without a floor is of little use to anyone. If your floor has a huge hole does not guarantee that your homeowner's insurance will pay to repair or replace it. The coverage for each given claim relies on the terms of your policy, the quantity of coverage you have, and the nature of the damage. In some instances, homeowner's insurance is completely useless.

Likely Coverage

HO-2 or HO-3 coverage is likely included in most homeowners insurance policies. An HO-2 policy insures your structure, including the floor, against thirteen distinct perils, such as fire, vehicles or aircraft crashing into the home, a pipe or water heater bursting, and accidental electrical discharge.

If the reason is not on the list, damages are not covered. You are covered against loss and damage from any source not expressly excluded by the policy. HO-6 plans give coverage equivalent to that of an HO-2.

What Is Left Out

Whether you have HO-2, HO-3, or HO-6, your coverage will not cover certain forms of damage. Flood-related floor damage is only covered by flood insurance. The insurance business defines flooding as damage produced by water after it has touched the ground, instead of damage caused by a burst pipe or rain penetrating a roof.

An earthquake policy is required for earthquake coverage. In addition, homeowners insurance will not cover the cost of replacing a floor if the damage was caused by lack of upkeep, normal wear and use, or termites.

What Return To Anticipate

If your policy covers floor damage, the next question is how much you can receive. When you purchased your insurance policy, you paid for a specific amount of coverage: Your policy will pay up to the coverage maximum, minus your deductible.

Suppose you purchased an "actual cash value" policy. There is an exception: These plans are less expensive, but they only cover the original cost of the floor, minus age-related depreciation, which may not be sufficient to pay for a new floor. Replacement-value plans provide higher coverage.

Other Insurance

Most homeowner's insurance policies cover emergency expenditures, such as hotel bills and restaurant meals, if you are forced to vacate your house until the new floor is installed. There is a maximum amount that your insurer will pay you, so keep your spending below that amount. Homeowner's insurance also covers contents damage: if a truck collides with your home and causes the upper floor to cave in, your policy will pay to replace the ruined furniture, appliances, and other belongings.

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