What Types of Damage are Typically Not Covered by Standard Homeowners Insurance?
Homeowners’ insurance costs thousands of dollars a year, so you probably think your home is covered, no matter what happens. Well, that is not necessarily the case.
You need to be aware that there are various forms of damage and certain events that are not covered. Regardless of the policy you select and the insurer you choose, you will likely not have coverage for any of the following.
1. Flooding
Standard homeowners’ insurance policies exclude coverage for flooding. This includes water damage originating from heavy rain, rising water tables, sewer backups, and groundwater seepage. Sewer backup coverage can be added on as an endorsement. Some carriers offer limited flood coverage.
2. Earth Movements
Damage resulting from the shifting or sinking of land, such as earthquakes, landslides, mudslides, sinkholes, subsidence, or volcanic tremors, is typically excluded. Coverage may still apply if the movement itself causes a fire or collapse. Some carriers offer minimal earthquake coverage as an endorsement.
3. Pest Infestations
Pest infestations such as those involving beetles, rodents, termites, bats, and bedbugs are not covered. Damage caused by the infestation might sometimes be covered in specific circumstances, but removal and treatment are left to the homeowner.
4. Mold or Wet Rot
Insurance typically excludes mold caused by long-term neglect or repeated moisture exposure. However, mold resulting from a sudden event like a burst pipe may be covered.
5. Wear and Tear or Neglect
Damage due to aging, deterioration, or failure to maintain the property is excluded.
6. Power Surges Caused by Your Utility Company
Surges originating from your property, such as from grid fluctuations or utility equipment, aren’t covered. However, surges that originate within your home, like from a malfunctioning appliance, may be covered.
7. Certain Dog Breeds
While many policies include coverage for dog bites and related liability, dogs with known aggressive behavior or breeds considered high-risk may be excluded from that coverage.
8. Home-Based Business Liability
Business activities from your home, like daycare or pet boarding, are not protected under personal liability coverage. Business property is often limited, so you’ll likely need a separate business insurance policy.
9. Local Building Ordinance or Law
Costs related to bringing your home up to current building codes, such as during a repair or renovation, even after a covered loss, are not automatically covered. Some coverage can be added by endorsement to cover this gap.
10. Intentional Damage
Insurance is meant for unforeseen losses, not intentional acts. This means any harm deliberately caused by you or a household member isn’t covered.
11. Nuclear Hazards
Damage or contamination from nuclear reactions, radiation, or radioactive materials is excluded. However, if there are any resulting fires, coverage may still apply under standard terms.
12. War
Loss or damage resulting from civil war, terrorism, or other violent hostilities is excluded.
13. Government Action
If a government or public authority confiscates, condemns, or otherwise forces the destruction of your property, homeowners’ insurance typically will not cover the loss.
Contact Us Today
Homeowners insurance does not cover everything, so make sure you have the coverage you need for your most prized possession: your home.
Hartman Insurance Agency, Inc. can help you select the appropriate insurance. Our Saline, Michigan, agents will help you get peace of mind knowing that your home is protected from unexpected events. Schedule a consultation today. Contact us via (734) 999-4190 or online here.