Homeowners’ insurance is a necessity for all the people out there. It is a one-stop solution for your multiple coverage requirements. Of course, these requirements are only related to your home. It will protect you against the unwanted events that may occur in the future. It could be theft, fire, or even vehicle damage. Whether you live in your house or give it on rent you must buy homeowners’ insurance. The liability protection against various forms of legal actions is another added advantage. Still, there are a few things that homeowners’ insurance does not cover. Here, we will share details about the same.
What Does Homeowners’ Insurance not Cover
#1: Damage Due To Lack Of Maintenance
Do you know your negligence for the things at your home can cost you a lot? Yes, multiple problems will arise if you do not maintain your home. It could a simple pest control on time. These things do not come under homeowners’ insurance. Another problem at home is mold. It occurs usually due to water damage. If it occurs slowly due to some sort of leakage at home then your insurance won’t cover it. The process of removing mold could be expensive for you. So it is important to keep a check for leakage and clean up water damage on time.
If the cause of water damage is covered peril then you must contact your insurance company. They will perform the professional clean up before the formation of mold. It is best if you deal with mold the time it appears or is about to appear. It will save you from larger problems. Companies recommend the use of dehumidifiers and air conditioners to prevent mold growth. Also, you can make use of mold killer such as bleach to keep your bathrooms clean.
If due to flood your house suffers from damage then your homeowner’s insurance won’t work. You have to apply for a flood insurance policy separately. The National Flood Insurance Program is responsible for administering the flood policies. The Federal Emergency Management Agency runs this program. If you live at a place where there is a high risk of floods then you won’t get benefit from this policy.
#3: Backups For Sewer
This is another thing that homeowners’ insurance not cover. If the damage to your house occurs due to sewer backup then it is not covered in your insurance policy. The insurance information institute stated that sewer backups occur due to various reasons. It includes sanitary blockages and outdated sewer systems. In case, your house has combined stormwater & raw sewage pipelines, it causes problems. You can purchase a separate policy for sewer backups coverage. Another option, you can choose it in the endorsement of your homeowner’s insurance policy.
#4: Earth’s Movement
In most of the cases, natural disasters that involve land movement do not come under this insurance. Areas with landslides, earthquakes, and those types of events do not get benefits. All you have to do is look for a separate policy for these events. If you are shifting to a new place and buying home insurance then research well. For example, the residents of California need earthquake policy. Another example is Florida where people need sinkhole coverage.
#5: Pet Attacks
If you own a pet that is part of an aggressive breed then some insurance companies won’t cover you. For example, you own a PitBull. You know the dog has the possibility of attacking you. If you are ready to take risks then why would a company cover you for that? Now, the companies may cover a few dog breeds. If your dog bites your friend who is at your home the company would cover its claim. However, the company’s coverage is according to your liability coverage.
It is a minimum of $100,000 in most cases. In case the liability coverage is lower than hospital charges then you have to pay on your own.
#6: Expensive Jewelry
Homeowners’ insurance does not cover jewelry items. It’s just that there is an exception to it. For your pricey jewelry like a family heirloom, you won’t get coverage. We all know that the first thing that thieves steal from a house is jewelry. They are at high risk and that’s why insurance companies limit coverage for them. It is usually about $1500. If you want to cover them then go for a rider. It is an endorsement that people use to cover their expensive pieces of jewelry. Alternatively, you can increase the liability limit.
#7: Home Business
If you run a home business then you need a separate policy for its coverage. With homeowners’ insurance, you get coverage if your friend gets injured at your residence. If a similar case occurs with your client then it comes under business-related categories, then your homeowners’ insurance policy won’t cover you. You will have to buy an additional policy for coverage for business content. You must research well about your homeowners’ insurance policy. It will give you an idea about the coverages that may not come under home business coverage.
Termites are not just some pesky pests. They can cost you a lot. In fact, studies claim that termites can cost you $5 billion in your property. That’s why termite damage doesn’t come in homeowner’s insurance coverage. Experts suggest that there must be a professional inspection for termites annually. If you know that you won’t benefit from insurance for a problem then take proper precautions.
So, this was all about what does homeowners’ insurance not cover. Every insurance company has different rules of policy. Some companies may include one coverage while others won’t. This only applies to rare coverages. It is extremely important to be aware of the exclusions in your policy. A homeowner’s insurance doesn’t cover all the mishaps that befall your household. A natural disaster is one of the exclusions in this category. If you read about homeowners’ insurance in detail then you will come to know about benefits too. You can also ask your insurance advisor for expert advice.
We hope this article clears your doubts about the coverage that home insurance offers. In case, you face problems in understanding it then leave your comments. We will try to get back to you as soon as possible.