What Your Homeowners Insurance Policy Might Not Cover
ASHLEY URBAN
About a year after my husband and I bought our first home, lightning struck a tree and knocked down a power line near our house. If you have ever owned a home, you have likely experienced a similar situation. In those moments, you might have the question, "Is this an insurance thing? Who should I call?"
Now, as an insurance agent, I get these calls often. More times than not, the calls are from first-time homebuyers, but there can be some scenarios that even seasoned homeowners, and admittedly myself, need to dig into deeper.
In situations like this, look at your homeowners' policy, and find the answers to the following questions:
What is excluded from my policy? I.e., what losses are not covered in my homeowner's policy?
What can I potentially add (endorse) to my policy?
What is my policy limit? Or what is the maximum amount my policy will cover in damages?
Below are some generalized policy exclusions, endorsements, and limits. But know, these can vary substantially from company to company and even agent to agent!
Common Homeowners Policy Exclusions:
Flood, or water seeping in through the foundation
Wear & tear, home maintenance, and neglect
Settling, cracking, bulging, or other foundational/structural issues caused over time
Damage caused by your pet
Damage caused by insects, pests, or other vermin
Damage to outer structures caused by ground or earth movement (i.e., your retaining wall collapses)
Damage caused by illegal activities or operations
Common Exclusions that can be Endorsed (added):
Earthquake – often for a higher deductible
Water/Sewage Back-Up and Sump Pump Failure
Utility Lines
Mechanical Breakdown (not to be confused with a home warranty!)
Roof/Siding Matching
ID Fraud
Hidden Water Damage
Common Items with Lower Limits:
Mold, Bacteria, or Fungi Coverage
Theft of Tools
Jewelry, Firearms, Silver, Currency, or other valuables
Business Personal Property
Property owned by others on-premises
Property stored off-premises or at a secondary residence
Many other items fall into each of these categories. Homeowners insurance means to protect you from a large, instantaneous, or catastrophic event. When in doubt, ALWAYS reach out to your agent to better understand what may or may not be covered or to discuss a claim before calling your insurance company.
