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10 surprising things that are excluded in most homeowner insurance policies

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 | August 15, 2019

Purchasing a home is one of, if not the biggest, investments you will make in your life. In fact, one of the first things you do before you finalize the sale is get a homeowners insurance policy. Having home insurance isn’t just a requirement in most cases, but something any responsible home owner would do anyway to ensure they would be covered if anything goes wrong. The key word is “anything” because , like everything else in life, homeowners insurance policies can have notable exclusions and exceptions.

It’s important to be aware of common homeowners insurance exclusions so you can obtain supplemental coverage or find other ways to prepare. We take a look at some of the things your homeowners insurance won’t cover.

Common Homeowners Insurance Exclusions

Earth movement

Homeowners insurance policies typically exclude earth movement, for example earthquakes, sinkholes, and mudflows. While your basic home insurance will not cover these types of damages, you can easily obtain added coverage. Earthquake and sinkhole coverage is typically not even a separate policy; it is an add-on to your current home insurance coverage.

Water Damage

Water damage is often not covered by a standard homeowners insurance policy. This ranges from flood damage to sewer system issues. Flood damage can be covered with a flood insurance policy. Water backup and sump discharge or overflow coverage is usually offered as an add-on to your current home insurance policy. Your home insurance policy typically covers certain types of water damages, such as flooding caused by a burst pipe, as long as the incident wasn’t preventable.

Intentional or Preventable Loss 

Hopefully it comes as no surprise that your home insurance will not cover any damage that you intentionally cause. In addition, if something occurs and it is deemed by your insurance company as preventable you may not be covered. This proves to be just another reason to maintain the upkeep on your home.

Ordinance or Law

The simplest way to explain this coverage is if your home is deemed no longer up to standard building code or regulations, any claim would not cover the cost of upgrading the damage to meet new building codes. The good news is that you can add a rebuilding ordinance or law coverage endorsement to your policy.

Mold Damage

Another common homeowners insurance exclusion is mold. Mold is a problem that grows over time and, because of this, insurance companies see the issue as something that can be prevented, especially before it becomes an issue that affects your home or your family’s health. Do your best to prevent against mold, learn more here.

Luxury items

High-priced jewelry and extravagant art collections may not fall under your basic home insurance contents coverage. There is a wide range of items with a high price tag that will not be covered, but can easily be covered with a separate policy. Your home insurance personal possessions coverage has limits. If items in your home exceed those limits, call an agent about separate coverage.

Aggressive Dog Breeds, Pools, & Trampolines

These are just a couple of the issues that may cause insurance carriers to deny you coverage. However, there are some carriers that will offer coverage or coverage options for poolstrampolines or aggressive dogs. The risk is so high for all of these things when it comes to accidents and lawsuits, consider the home insurance issue before purchasing (or adopting).

Defamation of Character 

There are homeowners insurance liability coverage exclusions, too. Home insurance does offer personal liability coverage when you are responsible for an injury to someone else, however, slander and defamation of character aren’t included.

Identity Theft

This is something becoming more and more common in home insurance policies, but not all carriers are making it standard. To check to see if you have coverage, call your agent. If you don’t, you often have the option to add it.

Business Related Claims

Home insurance for business related claims can be very tricky. If you are doing any business in your home or out of your home, talk to someone about business insurance. There is a wide variety of business insurance policies for everyone’s needs and chances are there’s one for you and your business, no matter how small.

Do you have the homeowners insurance coverage you need?

These common homeowners insurance exclusions can be common risks to your home, depending on where you live. Examining the coverage your homeowners insurance provides can help you determine whether you may need supplemental coverage. If you’re wondering whether your homeowners insurance is enough, the best thing you can do is contact your insurance agent and speak with them directly about your concerns.


Review what your current homeowners insurance policy includes and excludes with one of our expert insurance advisors at (844) 300-3237 today.

 

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