When it comes to protecting your home, having insurance is a must, but what do home insurance companies don’t cover? Standard policies offer some coverage against common issues like fire or theft.
however, there can still be surprising gaps that leave you paying out of pocket for natural disasters and certain personal property and liability risks that aren’t included.
understanding which are covered before a disaster hits is equally as crucial. In this guide, we outline common exclusions so you can spot blind spots quickly so they can be filled promptly before it’s too late!
Table of Contents
Common Events Not Covered by Home Insurance
Explore some of the more frequently occurring events not typically covered under standard homeowner policies.
Earthquakes, Sinkholes and Landslides
Most standard homeowner insurance policies don’t cover damage from earth movement such as earthquakes, sinkholes, or landslides, which includes earthquakes.
Therefore, if you live in an at-risk area, you should likely purchase additional coverage specifically tailored for these natural events.
Flood Damage from Natural Disasters
While sudden water damage–like burst pipes–is generally covered, flooding from natural disasters usually is not.
This includes rising waters from heavy rainfall or hurricanes or overflowing rivers.
To be on the safe side and get protection for these events, look into purchasing flood insurance through either the National Flood Insurance Program (NFIP) or private insurers.
Government Action, War, and Nuclear Hazards.
Unfortunately, your standard policy won’t cover damage from war, government seizure, or nuclear accidents as these rare yet extreme incidents usually can’t be predicted with certainty as far as potential costs.
Negligence, Poor Maintenance, or Wear and Tear. Home insurance was meant to cover sudden events rather than gradual wear and tear.
If damage results from negligence, such as failing to fix leaky roofs or termite infestation, your claim could be denied, and regular maintenance must take place to safeguard both home and wallet.
Negligence, Poor Maintenance, or Wear and Tear
Unfortunately, most policies limit or exclude coverage for mold growth caused by long-term moisture issues, often preventable with regular upkeep and upkeep checks.
Some insurers do offer limited mold coverage as an add-on policy so it might be worthwhile enquiring further about them.
Construction-Related Damage
If damage arises while renovating or building an addition, and is covered by your standard policy. However, additional coverage such as builders’ risk insurance may be needed to safeguard against potential financial liability during construction activities.
Property and Personal Belongings May Not Be Included in Estate Sales
Most homeowners’ policies impose coverage limits for high-value items like jewelry and art that exceed this amount, such as $1500 of jewelry theft coverage in case it happens.
This doesn’t matter whether your collection of gems exceeds this sum or not!
To properly protect these belongings, it may be a wise investment to add a scheduled personal property endorsement or rider coverage.
This additional protection itemizes each valuable, often necessitating appraisal services, to make sure their true worth can be compensated if lost, stolen, or damaged.
Home-Based Business Equipment
If you run your business from your own home, its standard policy likely does not extend coverage of work-related equipment such as computers, cameras, tools, and inventory.
In fact, most homeowners’ policies only offer up to $2,500 of coverage – something which may not cover everything required.
Assuming you operate as a photographer, designer, or online seller without proper coverage for your equipment, theft, fire, and other forms of loss could easily put it at risk.
Home-based business insurance or business owner policies (BOPs) would cover losses from theft and fire as well as accidental damage claims from clients or consumers alike.
Your Home Insurance and Liability Coverage for Pet-Related Injuries
While home insurance typically provides liability protection against injuries to pet-related incidents, this doesn’t apply to every breed and exotic pet.
some insurance providers exclude specific dog breeds considered high-risk, such as Pit Bulls, Rottweilers, Dobermans, or German Shepherds, while exotic species like snakes, monkeys, or large reptiles often fall outside this coverage altogether.
If your pet falls onto an insurer’s restricted list, their claims could be denied or your policy cancelled outright.
Make sure you disclose them up front, as well as consider liability coverage if owning breeds that could pose a risk.
Pest, Rodent, and Insect Damage
Damage from pests such as termites, rats, or bed bugs typically isn’t covered under homeowners’ policies as these issues tend to result from poor home maintenance rather than sudden accidents.
termite damage to structures can cost thousands, yet insurers won’t contribute unless you add a pest control rider (rare).
Regular inspections and treatment by professional exterminators is your best defense.
Water Damage Coverage Explained
Home insurance doesn’t treat all water damage equally. While water damage claims are one of the primary drivers behind filing claims, not everyone realizes it’s covered.
Insurance providers make distinctions between sudden, accidental damage that requires immediate repairs (usually covered) and gradual or preventable issues that develop over time (often not).
Being aware of these differences will help avoid unpleasant surprises should disaster strike!
Flood Damage
Standard homeowners’ policies do not cover flood damage caused by natural events like heavy rainfall, hurricanes, or overflowing rivers and lakes.
Any time water enters from outside sources due to rising levels, this constitutes flooding, which is specifically excluded in standard policies.
To protect your property against floodwater damage, you will require either the National Flood Insurance Program (NFIP) or private providers who specialize in this form of insurance coverage.
Sewer Backups, Septic Overflows, or Sum Pump Failures
Many homeowner policies don’t automatically include damage from sewer backups, septic system overflow, or sump pump failure as coverage; yet these events often cause substantial water damage in basements.
Pro Tips: For homeowners living in older properties with sump pumps and finished basements, having this coverage should be essential.
Burst Pipes and Appliance Leaks
Good news! Most insurance policies cover water damage caused by sudden, accidental burst pipes or malfunctioning appliances like washing machines, dishwashers or water heaters causing sudden and accidental rupture or malfunction, with suddenness defined as accidental and suddenness being key factors here.Typically covered:
* Water damage due to frozen pipes (provided reasonable precautions were taken), with overflow from washing machine/dishwasher
*overflow and sudden leakage from a water heater being covered, along with any overflow issues from washing machines/dishwashers, etc.
Accidental Vs. Long-Term Leakage
Homeowners often find themselves mistaking accidental water damage with gradual leakage damage that accumulates over time, but insurance typically only covers accidental flooding as opposed to cumulative effects over time.
Covered as Accidental:
* A pipe bursts suddenly, etc
* If a washing machine hose disconnects and floods a room,
Not covered (gradual):
- A slow leak under a sink that causes mold over months
- Water damage from poor maintenance, rust, or corrosion
That’s why regular inspections and maintenance are crucial. If an issue could’ve been prevented, insurance likely won’t help.
Liability and Personal Injury Exclusions
Your homeowner’s policy won’t cover every injury or legal claim that arises; here are key exclusions that could leave you unprotected without proper awareness.
Injuries from Trampolines, Pools, and Certain Pets
Unfortunately, homeowners’ liability policies often exempt injuries caused by trampolines, swimming pools, and certain dog breeds, as these activities pose a high risk for accidents or bites; though certain insurers may make exceptions.
For instance:
* Dismiss claims made for injuries sustained on trampolines or in pools
* Exclude breeds such as Pit Bulls, Rottweilers or Huskies from pet liability coverage.
To stay covered, consider adding an umbrella policy or additional liability rider, and always disclose these features to your insurer.
Intentional Acts by Residents
Insurance will not cover damage done intentionally to your home by its residents, such as:
- * Physical injuries caused intentionally
- * Vandalism and arson.
- * Illegal Activities
Even when committed by children or teenagers, anyone found responsible can still be held accountable; however, insurance will typically exclude payments for intentional harm as part of any liability policy coverage.
Business-Related Liability Coverage
Are You Running a Home-based Business? Unfortunately, standard homeowners’ policies won’t cover liability claims from:
* Clients visiting Your Property
* product-related injuries.
* Business-Related Accidents
You’ll need home business insurance or a business liability policy to ensure full protection. Without it, you could face lawsuits or claims with no insurance support.
How to Extend Coverage
Standard homeowners’ policies don’t cover everything, so to maximize coverage for yourself and meet specific needs you can add add-ons and endorsements tailored specifically for you.
Flood Insurance
Home insurance does not protect against flooding damage; therefore, in order to safeguard against rising waters, heavy rainfall, or storm surge damage.
homeowners in flood-prone areas must secure separate flood coverage either through the National Flood Insurance Program (NFIP) or with private providers.
This coverage must include both rising waters as well as any heavy rainfall, which might erode away foundational support systems and give access to clean drinking water sources in emergencies.
Earthquake Insurance
Unfortunately, earthquakes aren’t covered under standard policies. If you live in California or parts of the Midwest, where earthquakes may strike frequently.
Earthquake insurance becomes even more essential as it provides coverage against repairs to foundations, walls, and possessions after a seismic event has taken place.
Personal Property Riders
Protect high-value items like jewelry, artwork and collectibles beyond their policy’s coverage with peace of mind by listing each one individually within your personal property rider (also called scheduled personal property endorsement).
A rider gives full value protection by listing every individual item individually – great for peace of mind.
Water Backup Coverage
Most standard policies do not cover damages related to sewer backups, sump pump failures or drain issues – though adding this coverage could save thousands in cleanup and repairs, especially in finished basements with older plumbing systems.
Home Business Endorsements
Running a home-based business means your personal insurance doesn’t cover equipment, clients or business liability – an endorsement provides coverage without needing an entire commercial policy.
what do home insurance companies don’t cover
- Aggressive Dog Breeds
- Construction Damage
- Earthquakes
- Flooding
- Government Action
- Home-Based Businesses
- Intentional Damage
- Mold
- Pests and Infestations
- 10. Poor Maintenance
- War
- High-Value Valuables Beyond Limits
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