Homeowners insurance exclusions

A homeowners insurance policy covers many perils, such as fire and lightning, but not everything. Furthermore, depending on the type of homeowners insurance policy you have, your home may be insured against specific named perils or against all perils except those expressly excluded.

Exclusions are perils that your homeowners insurance will not cover. Identifying what these are and whether there are options to help you insure against them could help strengthen your insurance plan.

Home insurance exclusions

A home insurance policy does not cover many perils. You may be able to add an endorsement from your home insurance company for an additional fee to have coverage against them. In some cases, you may be required to purchase a completely separate policy. The following are some of the most common home insurance exclusions, as well as the steps you may be able to take to obtain coverage.

Floods

Flood damage is almost always a homeowner exclusion. Flood damage is a common exclusion in HO-3 policies, but even homeowners with HO-5 policies, which provide more coverage than HO-3 policies, are unlikely to be covered for flood damage.

A separate flood insurance policy is required for coverage against flood damage. While anyone can purchase flood insurance, you may be required to have it if your home is in a high-risk flood zone as determined by the Federal Emergency Management Agency's (FEMA) flood map. Flood insurance is typically available through the National Flood Insurance Program (NFIP) or from a private carrier.

Earthquakes and earth movement

Earth movement damage, like flood damage, is a common homeowners insurance exclusion. Earthquakes, landslides, and mudflows are typically excluded causes of loss. Because earthquakes can cause massive damage, you should consider purchasing coverage, especially if you live in an earthquake-prone area like California. Residents of California can generally obtain earthquake insurance from the California Earthquake Authority (CEA) or a private insurer.

You may be able to get earthquake coverage by adding an endorsement to your home policy, depending on where you live and how common earthquakes and earth movement are. If you live in an earthquake-prone area, you may need to purchase an earthquake insurance policy separately.

Maintenance

If you own a home, you will almost certainly have to do some maintenance work at some point. Repairing an appliance or updating your plumbing or electrical systems are examples of this. These types of repairs are frequently classified as maintenance, and home insurance rarely covers them.

Being proactive in your home maintenance can assist you in resolving issues before they become catastrophic. You might want to consider putting money aside for home maintenance so that you can cover the costs if an issue arises. If you are concerned about your ability to afford the cost of home maintenance, you can look into purchasing a home warranty.

Pests

Almost all homeowner policies exclude vermin infestations, such as insects and rodents. Whether your home is infested with termites, bedbugs, or mice, your home insurance policy is unlikely to cover the costs of eradication and remediation.

There is rarely an endorsement or separate policy available to obtain insurance coverage for these types of losses. A pest control company, on the other hand, may provide a warranty for a set period of time after your home has been treated for an infestation.

Home-based businesses

While your home policy most likely includes liability insurance in the event that someone is injured in your home, this coverage does not usually extend to a home-based business. If a client slips and falls while visiting your home office, your home insurance will almost certainly not cover the resulting medical expenses, as well as any legal fees or settlements if that person decides to sue. Similarly, most home insurance policies limit the amount of business personal property coverage you have, and some policies may completely exclude coverage. If your work laptop is stolen while you are working from home, your coverage may be limited or non-existent.

You may be able to add a level of coverage to your home insurance policy if you own a home-based business or work from home. If your company is larger, you may require a separate business policy for coverage.

Mold

Mold is usually a home insurance exclusion unless it is caused by a covered peril. For instance, if a storm breaks a window and the resulting water damage causes mold, you may be covered for mold remediation. However, if mold develops slowly or you cannot identify a cause, you will most likely have to pay for any necessary treatment and repairs out of pocket. You might be able to increase the level of mold coverage on your home insurance policy, but this varies by company.

The full cost of high-value items

While homeowners insurance may cover some of your more valuable personal property, such as jewelry, art, and collectibles, most policies have a dollar limit, such as $1,500 for all of your jewelry.

If you have more expensive possessions, such as high-value jewelry, you should inquire with your home insurance company about endorsements for high-value items. These policy riders typically list the expensive items separately and frequently cover them for their full replacement value. The deductible on the endorsement may be lower than the deductible on your home insurance policy or none at all. Your company may also provide this coverage as a separate policy.

Insurance companies and home insurance exclusions

While many home insurance exclusions are standard for most companies, each insurance company and insurance policy is unique. Examining your coverage and speaking with your insurer about your specific policy may assist you in determining whether you require additional coverage.