A homeowners insurance policy covers many different risks, like fire and lightning, but it doesn’t cover everything. Also, depending on the type of homeowners insurance policy you have, your home may be insured against specific named perils or all perils except those specifically excluded.
Perils that your homeowners insurance won’t cover are called exclusions. identifying what they are and whether or not there are options available to help you insure against them could strengthen your insurance plan.
home insurance exclusions
many perils are not covered by a home insurance policy. To have coverage against them, you may be able to add an endorsement from your home insurance company for an additional fee. Or, in some cases, you may need to purchase an entirely separate policy. Listed below are some of the more common home insurance exclusions and steps you can take to obtain coverage.
Flood damage is almost always a homeowners exclusion. Flood damage is a very common ho-3 policy exclusion, but even homeowners with ho-5 policies, which provide broader coverage than ho-3 policies, are likely not covered for flood damage. /p>
To obtain coverage against flood damage, you will need to purchase a separate flood insurance policy. While anyone can purchase flood insurance, your mortgage may require you to have flood insurance if your home is located in a high-risk flood zone as determined by the Federal Emergency Management Agency’s flood map (fema). She can usually purchase flood insurance through the National Flood Insurance Program (NFIP) or from a private provider.
earthquakes and earth movements
Like flood damage, damage from earthworks is a common homeowners insurance exclusion. Excluded causes of loss generally include earthquakes, landslides, and mudflows. Because earthquakes can cause devastating damage, you may want to consider purchasing coverage, especially if you live in an earthquake-prone area like California. California residents can generally purchase earthquake insurance through the California Earthquake Authority (CEA) or a private insurer.
Depending on where you live and the frequency of earthquakes and ground movements, you may be able to get earthquake coverage by adding an endorsement to your homeowners policy. If you live in a particularly earthquake-prone area, you may need to purchase a separate earthquake insurance policy.
If you own a home, chances are you’ll have to do some maintenance work at some point. This could include repairing an appliance or upgrading your plumbing or electrical systems. These types of repairs are often considered maintenance and are rarely covered by home insurance.
Being proactive in your home maintenance could help you solve problems before they become catastrophic. You may want to consider setting aside some of the money for home maintenance so you have the funds to cover costs when a problem arises. If you’re worried about being able to afford the cost of maintaining your home, you might also consider purchasing a home warranty.
Nearly all homeowners policies exclude vermin infestations, including insects and rodents. Whether your home is plagued by termites, bed bugs, or mice, your home insurance coverage may not cover the costs of eradication and remediation.
There is typically not an endorsement or separate policy you can purchase to obtain insurance coverage for these types of losses. however, a pest control company may offer a guarantee for a certain period of time after your home has been treated for an infestation.
While your homeowners policy likely has liability insurance in case someone is injured in your home, the coverage does not typically extend to a home-based business. If a client slips and falls while visiting your home office, their home insurance will most likely not cover the resulting medical expenses, legal fees, or settlements if that person decides to sue. Similarly, most home insurance policies have a limit on the amount of business personal property coverage you have, and some policies may exclude coverage entirely. If your work laptop is stolen while you’re working from home, you may have limited or no coverage.
If you run a home-based business or work from home, you may be able to add a certain level of coverage to your home insurance policy. if your business is larger, you may need a separate commercial policy for coverage.
In most cases, mold is a home insurance exclusion unless the mold is the result of a covered peril. For example, if a storm breaks your window and the water damage causes mold, you may have coverage for mold removal. But for mold that grows slowly or for which you can’t pinpoint a cause, you’ll likely have to pay for any necessary treatment and repair out of pocket. You may be able to increase the level of mold coverage on your homeowners policy, but this option differs by company.
the total cost of high value items
While homeowners insurance may offer some coverage for your most expensive personal property, such as jewelry, art, and collectibles, most policies limit the payout to a certain dollar amount, such as $1,500 for all her jewelry.
If you have more expensive possessions, like high-value jewelry, you can ask your home insurance company if they offer endorsements for high-value items. These policy riders typically list expensive items individually and often cover them at their full replacement value. the endorsement may have a lower deductible than your home insurance policy or have no deductible at all. your company might also offer this coverage in a separate policy.
insurance companies and home insurance exclusions
While there are many home insurance exclusions that are standard for most companies, every insurance company is different, as is every insurance policy. reviewing your coverage and talking to your insurer about your specific policy can help you identify if you need additional coverage.
See also: How To Submit An Insurance Claim
frequently asked questions
why are some damages excluded from home insurance?
How do I know what my policy excludes?
do all home insurance policies have the same exclusions?