What does your insurance policy really cover?

Well, windstorm damage to homes is down nationwide over the last 5 years. That's not going to continue forever, we just haven't had a major hurricane in New Jersey for a few years. So, check your homeowner’s insurance and make sure you know what your insurance policy covers.

Hail has been down for the same 5 years. Not as big a problem for NJ as in the middle of the United States. But it can damage roofs and cars. Again, check your car insurance as well so you know what happens if a big thunderstorm tosses you hail that leaves your car all dimpled. (I've seen big hail smash windshields, crumple car roofs, and ruin the entire roof on a home.)

Fire damage has been slowly dropping for decades. Better wiring, new heating systems, less smoking in bed, all contribute to fewer fires. Still a chance of ruining your home, and remember any mortgage requires you to carry adequate fire insurance. Any home insurance policy carries fire coverage, just check to make sure you have enough to replace your house if the worst happens. I've seen a case where the family got out with their kids and their pajamas, and that's all.

Water damage comes in two flavors: Weather related and not weather related. Flood coverage needs its own policy so check what you need. Outside major flood zones, flood insurance may be relatively cheap. And your home insurance should cover damage from pipes bursting. Power outages in winter cause freezing pipes but even in summer, an old pipe can let go. If you're away for a few days, a broken pipe can let thousands of gallons run through your house.

Article courtesy of our producer, Glenn Tippy.