What Homeowners Insurance Doesn't Cover: You Might Be Surprised

Home near fault line

Homeowners insurance is an invaluable investment that helps secure and protect your home and the items within its walls. While insurance will protect your home from a variety of things such as theft as well as fire and wind damage, there are many things homeowner’s insurance doesn’t cover that often surprise homeowners. It is important you are aware of what your homeowner’s insurance does cover, so you are not surprised by a rejected claim. If you are wondering what homeowners insurance doesn’t cover, here are a few common things not covered.

Many homeowners who live in earthquake prone areas like California assume their homeowner’s insurance will protect them should their home be damaged or destroyed in an earthquake. Many California homeowners are surprised to learn their insurance policy does not cover damage caused by earthquakes. The only way to ensure your home is protected should there be an earthquake is to invest in a separate earthquake insurance policy. This can be a wise investment to protect your greatest asset if you live in regions where earthquakes are common.

Flood Damage

Similarly, flooding is another disaster generally not covered by standard homeowner’s insurance. The type of flooding generally does not matter. Whether the flooding is a result of a hurricane, intense rains or a local dam breaking, you likely are not covered by your insurance policy. If you have experienced flooding in your home before or you live in an area where flooding is common, you will likely want to invest in separate insurance to protect your home. Depending on the area you live, flood insurance may not be available. You will want to look into whether you live in an area designated for flood insurance.

Termite Infestations
Termite damage is one of the most common types of damage that plagues homeowners. In fact, termites cause an estimated $5 billion in damage to homes in the United States each year. For this reason, homeowners are often shocked to discover their termite damage is not covered by their homeowner’s insurance policy. This makes it particularly important homeowners protect their home against termite damage in the first place so they do not end up with costly expenses. Having your home sprayed and inspected regularly by a licensed pest control company is one of the best ways to prevent termite damage in your home.

Jewelry and Fine Art
One of the main reasons people invest in homeowner’s insurance is to ensure their belongings are protected in the event their home is burglarized or destroyed by fire. There is often a limit, however, to how much your insurance policy will cover, and your policy may not protect expensive items such as jewelry, fine art and collectables. For valuable items such as these, it is often necessary to have a specific insurance rider. For certain expensive items, you may even want to consider a separate insurance policy protecting them, such as jewelry insurance for your wedding/engagement ring.

Homeowner’s insurance is an important investment every homeowner should make to protect their home. Homeowners must be aware of the limitations of homeowner’s insurance so they are not surprised in the event of an emergency, and so they can make plans now to protect their property.

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Lisa Walker