Disclaimer: Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.
When it comes to owning a home, having homeowners insurance is a must. Home insurance allows you to protect your home against unexpected disasters and accidents, offering a peace of mind. However, understanding that not all risks are covered under a typical home insurance policy is essential. Below are disasters and accidents that home insurance doesn’t typically cover, so that you can protect your most valuable asset.
Flood Damage
A common misconception is that flood damage is covered under home insurance. But in reality, standard insurance policies typically exclude flood coverage. Geographical areas that are prone to floods usually need to purchase separate flood insurance. According to the Federal Emergency Management Agency, between 1996 and 2019, 99% of counties in the United States experienced at least one flood. Do you research on finding the best flood policy or add-on to your personal home insurance to get covered. If your current insurer doesn’t offer flood insurance, look into the National Flood Insurance Program (NFIP).
Earthquake Damage
Similarly to floods, earthquakes aren’t usually covered by standard homeowners policies. An exception to coverage is if an earthquake strikes and sparks a fire, leading to your house being burned down.Earthquake insurance covers your dwelling, other structures, personal property, and other additional expenses. The West Coast is where most of the earthquakes occur in the United States and only 28% of homeowners in that area have earthquake coverage. Like floods, you can purchase a separate earthquake insurance policy in order to mitigate the financial risks that are associated with earthquake damage.
Maintenance-Related Issues:
Keeping up with your home as the years progress can help down the road when regular wear and tear causes maintenance issues. Home insurance is designed to protect against sudden and unforeseen events. Damage from mold, pest infestations, or rot isn’t generally covered by home insurance policies. It is crucial for homeowners to keep up with their properties to prevent maintenance issues.
Sewer Backup
When sewage backs up into your home, it can be very costly to repair the damages, especially if the damage is substantial. Standard home insurance doesn’t typically include coverage for sewer backups because the sewage system underground runs through the neighborhood or city. The city or county should maintain the sewage pipes that run through the neighborhoods. However, you can always purchase a separate plan to specifically cover sewer incidents.
Home Business Equipment
Running a business out of your home can be great, but you'll also need to know the liabilities when it comes to insurance and what your home insurance covers or doesn’t cover. Most home insurance will only cover up to a certain amount of your business equipment, but that will most likely not cover all of your expenses or lost income. In order to cover all aspects of your business or be able to be compensated for your equipment, you should consider looking into Homeowners Policy Endorsements, In-Home Business Policy/Program, or Businessowners Policy (BOP).
Valuable Items Beyond Policy Limits
Like every insurance policy, there are limits on what is covered and what isn’t. While personal belongings are typically covered, limits on coverage for high-value items do exist.These items may include jewelry, art, or collectibles. Past a certain dollar amount per each item or combined amounts may or may not be covered depending on your policy. If you would like to make sure your high-value items are covered, you would need to purchase additional coverage known as a Scheduled Personal Property Endorsement.
Acts of War and Terrorism
Events that are extremely uncommon such as Acts of War and Terrorism are also not covered under your standard home insurance. Even though this would most likely not happen, it’s important for you as a policy holder to understand that these events are not covered.
Understanding what home insurance doesn't cover is just as important as knowing what it does cover. By being aware of these exclusions, homeowners can take proactive steps to mitigate risks and ensure they have adequate protection in place. Having a knowledgeable insurance agent can give you advantage to getting all of your bases covered when it comes to your home. Finding the right additional coverage for you and your lifestyle can provide you with financial protection and a peace of mind. To make sure that you are adequately covered, annually, or even bi-annually, review your policies to see what you need to add or stop.
Need help? Contact the team at Northern Insuring Agency. Our professionals can help you figure out which personal insurance policy will be the best option to help you keep up with the ever-changing world we live in.
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