A standard home insurance policy covers your home and its belongings against named perils. While the coverages and offers might look great, it is important to also know the threats and hazards not covered by a standard homeowners insurance policy before purchasing one, rather than realizing it when it is already too late.
This way, you can be completely sure that you are getting the exact coverages suited to your unique needs. Besides, you can always get additional coverage/special endorsements included in your policy for an additional cost.
What Isn’t Covered by Homeowners Insurance Policy?
Some of the threats or hazards that homeowners insurance policy has no coverage for includes:
- Earthquake and Flood: There is no coverage for earthquakes, sinkholes, and other earth movement disasters in most states, and you’ll need to purchase insurance for it as an endorsement for an additional fee in all states, except California. The same goes for flood insurance, including mudflow, which is available only through the government-run National Flood Insurance Program.
- Water Damage: The standard homeowners insurance policy does not cover overflows or backups from your sump pump, sewer system, or drains. There is simply no coverage for any type of water damage, but by adding a separate endorsement, coverage might be available.
- Issues with Maintenance: Homeowners insurance policy covers costs for repairs if there is a damage in your house as a result of certain events; however, there are still some exceptions. Intentional neglect or failure to maintain your home properly can result in damages that won’t be covered. These include termites or insect damage, bird or rodent damage, rust, rot, mold, damage caused by smog or smoke from industrial or agricultural operations, food spoilage due to power outage, mechanical breakdown, defect, or general wear and tear.
- Some other coverage exclusions for homeowners insurance policy include damage caused by nuclear or war hazards, expenses incurred from an identity theft, etc.
Limited Home Insurance Coverage
Your home insurance policy might provide limited coverage under certain circumstances. For example, a watercraft owned by you and stolen from another location will not be covered except if stolen from your home.
Similarly, there’s limited coverage available for valuable properties like expensive wristwatches, silverware, art, furs, and gold. A replacement cost endorsement can also be added to your policy for lost items without factoring in depreciation.
There is also limited coverage for higher liability and medical payments, e.g., medical bills of third parties for injuries caused by you and legal bills for defense against claims.
Knowing what is covered by your homeowners insurance policy and what isn’t is a necessity, and if you need additional coverage, you can always purchase special endorsements to be added to your policy. If you need help with your home insurance policy, contact the experts at Scautub Agency in Scotia, New York today. We will be happy to discuss all your insurance coverage needs with you.