Homeowners insurance is an essential tool for protecting your property and possessions, offering a financial safety net against a variety of unforeseen events. Although it provides comprehensive coverage, there are certain limitations and exclusions you’ll want to be aware of as a homeowner. Understanding what your policy doesn't cover is crucial for ensuring you have the necessary protection in place.
From natural disasters to specific types of damage, there are several common scenarios that fall outside the scope of typical homeowners insurance policies. In this article, we outline seven events and circumstances not covered by your homeowners insurance policy to help you find and maintain the protection you need.
1. Earthquakes and Floods
Homeowners insurance typically does not cover damage caused by earthquakes. This means that if an earthquake causes structural damage to your home or damage to personal belongings, the standard homeowners insurance policy wouldn’t provide coverage for these losses. To protect against earthquake damage, homeowners can purchase a separate earthquake insurance policy or add an endorsement to their existing homeowners insurance policy. The need for earthquake insurance may vary depending on the geographic location, as regions prone to seismic activity may have a higher risk of earthquake-related damage.
Aside from earthquakes, standard home insurance policies typically do not provide coverage for flood damage. To protect against flood damage, homeowners should purchase a separate flood insurance policy. In the U.S., the National Flood Insurance Program (NFIP) offers flood insurance coverage for homeowners, renters, and businesses in participating communities. Additionally, private insurance companies may also offer flood insurance policies.
2. Damage from Negligence or Lack of Maintenance
Typically, homeowners insurance doesn’t cover damage resulting from negligence or lack of maintenance. A standard homeowners insurance policy is designed to provide coverage for sudden and accidental damage or losses that are beyond the control of the homeowner. This means that damage caused by a lack of maintenance, gradual deterioration, or neglect is usually excluded from coverage.
3. Sewer Backup
Under a typical home insurance policy, a faulty sewage system most likely won’t be covered. Sewage problems can cause major damage to floors, furniture, belongings, and your home, and it can cost thousands of dollars to repair. Many carriers will offer coverage for sewer backup as an add-on form of coverage to your home insurance policy, so if your property has sewer issues, you may want to consider purchasing this add-on to your policy.
4. Certain Dog Breeds
Homeowners insurance policies may place restrictions on coverage for certain dog breeds due to the perceived higher risk of liability claims associated with those breeds. Insurance companies consider certain dog breeds to be more prone to aggressive behavior or to have a higher likelihood of causing injury, which can lead to costly liability claims. As a result, some insurers may either exclude coverage for specific dog breeds altogether or require additional precautions and higher premiums for households with these breeds.
5. Very Expensive Jewelry
The personal property coverage portion of your home insurance policy will provide coverage for belongings such as furniture, clothing, sporting goods, or electronics in the event of a covered loss. However, super expensive jewelry such as an engagement ring or family heirloom will likely not be reimbursed under your standard policy. To protect your more expensive pieces, you’ll want to purchase additional coverage on top of your standard home insurance policy.
6. Damage from Mold
Homeowners insurance coverage for mold damage can vary depending on the cause of the mold and the specific policy. In many cases, homeowners insurance provides limited coverage for mold damage, with certain types of mold-related issues being covered while others are typically excluded. Mold damage that is the result of long-term issues such as persistent humidity, poor ventilation, or neglect may not be covered by homeowners insurance. Insurers typically consider these to be maintenance issues rather than sudden and accidental losses. Additionally, mold damage resulting from flooding is generally not covered by standard homeowners insurance and requires a separate flood insurance policy.
7. Plumbing Issues
Plumbing issues can be covered under homeowners insurance, but the extent of coverage typically depends on the cause of the problem and the specific policy. Damage resulting from gradual wear and tear, lack of maintenance, or aging of plumbing systems is typically not covered by homeowners insurance. Insurers expect homeowners to perform routine maintenance to prevent these issues before they cause damage to their homes and property. Homeowners are encouraged to maintain their plumbing systems to prevent issues that may not be covered by their policy.
Understand Your Homeowners Insurance Coverage with SelectQuote
When it comes to protecting your most important assets, like your home, you’ll want to find a homeowners insurance policy that offers the coverage you need. At SelectQuote, we can help you figure out where there are gaps in your homeowners insurance policy to make sure you have the right amount of coverage based on your location, the value of your belongings, the dog breeds you have, and your other unique circumstances. In just minutes, our licensed insurance agents can provide you with unbiased quotes from several of the most highly trusted carriers in the nation so you can compare your options and determine which coverage is the right fit.
