10 Things Your Homeowners Insurance Doesn’t Cover

1. Flood Damage

One of the biggest misconceptions about homeowners insurance is that it covers flooding. In most cases, it doesn’t.

Damage caused by rising water, heavy rainfall that enters your home from the ground, overflowing rivers, or storm surge typically requires a separate flood insurance policy.

Even homes outside high-risk flood zones can experience flooding, so it may be worth discussing your risk with your insurance agent.

2. Earthquakes and Ground Movement

Standard homeowners insurance generally excludes damage caused by earthquakes and certain types of ground movement.

This can include:

• Earthquakes
• Landslides
• Mudslides
• Sinkholes
• Earth shifting or settling

Depending on where you live, earthquake or other specialty coverage may be available separately.

3. Normal Wear and Tear

Homeowners insurance is intended for sudden and unexpected damage—not things that happen because your home gets older.

For example, your policy usually won’t pay to replace a roof simply because it has reached the end of its useful life.

Other examples can include:

• Worn-out flooring
• Aging appliances
• Peeling paint
• Deteriorating siding
• Old plumbing

Regular home maintenance is still the homeowner’s responsibility.

4. Damage From Poor Maintenance

Ignoring a problem for months and then filing an insurance claim usually won’t work.

For example, if you notice a small roof leak but leave it unrepaired until it causes major water damage, some or all of the damage could be excluded.

Insurance companies generally expect homeowners to take reasonable steps to maintain their property and prevent additional damage.

5. Pest and Insect Damage

Discovering termites, mice, squirrels, or other unwanted guests can get expensive quickly.

Unfortunately, homeowners insurance typically doesn’t cover damage caused by infestations because pest problems are generally considered preventable through routine maintenance.

This can include damage from:

• Termites
• Bed bugs
• Rodents
• Ants
• Other insects or pests

6. Sewer or Drain Backups

If sewage or water backs up through a drain or sump pump and damages your basement, a standard homeowners policy may not automatically cover it.

However, many insurance companies offer water backup coverage as an optional endorsement.

This relatively small addition to your policy can provide valuable protection, especially if you have a finished basement or keep valuable belongings downstairs.

7. Certain Expensive Valuables

Your personal property is typically covered by homeowners insurance, but certain categories of valuable items may have special limits.

These can include:

• Jewelry
• Watches
• Fine art
• Firearms
• Collectibles
• Coins
• High-value electronics

For example, you may have thousands of dollars of jewelry but only a limited amount of coverage for theft under your standard policy.

High-value items may need to be scheduled separately to receive broader or higher limits of protection.

8. Business-Related Property and Liability

More people than ever work or operate businesses from home, but homeowners insurance isn’t designed to fully protect a business.

Your policy may provide very limited coverage for business equipment, and certain business-related liability claims may be excluded entirely.

If you operate a business from your home, you may need a home-business endorsement or separate commercial insurance.

9. Intentional Damage

Insurance is designed to protect against accidents—not intentional actions.

If a homeowner intentionally damages their own property or deliberately causes a loss, homeowners insurance will generally not cover it.

Intentional acts that cause injury or property damage to someone else may also be excluded from liability coverage.

10. Your Car

Your homeowners policy may cover certain personal belongings that are stolen from your vehicle, depending on the circumstances and your policy.

But damage to the vehicle itself isn’t covered by homeowners insurance.

For example, if a tree falls on your car during a storm, the damage would normally fall under the comprehensive portion of your auto insurance, not your homeowners policy.

 

Homeowners insurance can provide valuable protection, but it’s just as important to understand what your policy doesn’t cover as what it does. Knowing about common exclusions can help you avoid unexpected expenses and make sure you have the right additional coverage in place.

Every home and homeowners policy is different, so reviewing your coverage regularly is one of the best ways to make sure you’re properly protected.

You can experience being a part of and full-serviced independent Insurance Agency today! Simply contact Briggs Agency Inc, if you are interested in an insurance review at 219-769-4840 or visit our website at www.BriggsAgency.com. We look forward to hearing from you!

 

Blog Post written by: Alex Condes and David Stefanoski