Your home is one of the most significant investments you'll make in your life, so you want to ensure you protect it with a quality home insurance policy. However, you might be surprised to learn that there are some things home insurance doesn't cover, including some natural disasters that are out of your control.
Policies vary from the provider, and some cover specific instances while others won't. Generally, home insurance policies cover crime, natural disasters and accidents, but this can vary. Below, we'll go into what homeowners insurance doesn't cover so you have the information you need to find a supplemental policy or create a plan to handle these problems independently.
Sinkholes
Sinkholes can potentially swallow up your entire home, making it one of the most dangerous things on this list. Unfortunately, most homeowners insurance policies don't cover much or even most of the damage caused by sinkholes. Sinkholes are critical events, and paying for the damage out of pocket can put many families through hardship.
While sinkholes aren't a concern for everyone, you may want to look into a supplemental policy if you live in a sinkhole-prone area or state, such as Pennsylvania, Florida, Texas and Missouri.
Floods
The nature of the flood usually determines whether your homeowners insurance covers the damage. For example, flooding from a burst pipe is likely covered under your home insurance policy. However, the damage likely won't be covered if your local river or stream overflows and the water floods your basement.
Flooding caused by natural causes, such as excessive rain or hurricanes, usually isn't covered, because the damage from these events can be extensive, and insurance companies usually can't provide coverage for all. You should look into supplemental flood insurance if your home is at risk for flooding.
Water Leaks
Typically, water damage has to be accidental and sudden for a homeowners insurance policy to cover it. Slow water leaks that cause damage, considered seepage or leakage, are usually denied coverage.
For example, maybe a homeowner had a contractor who damaged a pipe during a job. The small leak was unnoticed because it was connected to a guest bathroom they rarely used. If you rent the home from the owner years later and call to report warped floorboards or other damage caused by the leak, the homeowners insurance likely won't cover the damage, and the expenses will have to come out of pocket.
Mold
The cause of mold will determine whether or not your homeowners insurance covers it. For example, if you get mold due to a covered type of damage, such as water pipes bursting or firefighters drenching your home in water, your policy likely covers mold.
However, if mold is caused by things outside your coverage, such as flooding, home insurance likely won't cover the cost of the damage or restoration. Homeowners insurance usually doesn't cover mold caused by preventable problems, such as humidity or slow water leaks.
Wear and Tear
Everything wears down over time, but if wear and tear damage occur in your home, homeowners insurance may not cover it. For example, home insurance may cover a tree falling on your roof during a thunderstorm, but if your roof has reached the end of its life and cannot prevent damage to your home, you'll have to cover the cost of the damage.
Homeowners insurance usually covers emergencies you can't avoid. If the damage from wear and tear is something you could have prevented, your homeowners insurance won't cover the cost.
Appliances
Appliances like refrigerators, HVAC units, dishwashers and more are essential for your home, but they're not typically considered a part of your home by your homeowners insurance provider. Most insurance providers consider appliances the homeowners responsibility.
If you want to cover your appliances with insurance, some homeowners insurance providers offer equipment breakdown coverage endorsement for an extra cost, or you can get a supplemental insurance policy that will cover you in case something happens.
Home Businesses
Many people run businesses or work from home. Most homeowners insurance policies only cover a certain amount for home businesses. For example, if you use only a webcam or a computer, your insurance will likely cover it. However, your standard homeowners insurance policy won't cover if you keep a lot of inventory or more complex home business supplies.
If you want coverage for your home business, you can look into supplemental business policies to help add protection.
Sewer or Drain Backups
Sewer and drain backups are gross, but they can also be costly. Most homeowners policies don't cover these events, unless you add a sewer or drain backup endorsement to the policy for an extra cost. Otherwise, you must pay for the repairs and clean up yourself.
Earthquakes and Landslides
You may live in areas prone to earthquakes or landslides, such as parts of California or the mountains. If so, consider checking your insurance coverage. You may be surprised to learn your homeowners insurance doesn't cover these events without a coverage endorsement to the policy for an extra cost or a supplemental insurance policy.
While not everyone needs this type of insurance, those who live in areas prone to these events should seriously consider getting coverage. You'll protect your home if one of these events occurs and damages your property, saving you from paying out of pocket.
Termites
Termites can cause significant damage to your home's foundation, and many people don't realize they have them until the damage is done. Termite damage can be expensive to repair, and your homeowners insurance likely won't cover the cost.
Instead, look into ways to prevent termites or have your home inspected for them frequently so you can take care of the problem before it becomes a significant issue later. Be sure to have a professional inspect a house for pests, including termites, before buying a new home.
Acts of War
If the United States finds its way into a war on American soil, homeowners insurance won't be helpful if your home becomes damaged in the act of war. Most insurance policies have clauses that exclude them from covering damage caused by an act of war.
Acts of terrorism are usually covered, but this isn't always the case. It's best to check your insurance policy to determine the extent of your coverage.
Damage From Renovations
If you experience a renovation disaster caused by a contractor or a DIY project that went wrong, your homeowners policy likely won't help. Your contractor's insurance may also be limited, only covering new constructions and not your existing structure.
While renovating can help you make improvements and add value to your home, you'll want to find supplemental policies in case an accident occurs.
Historically Accurate Repairs
Some people live in landmark areas, and to make renovations to their homes, they must get permission from the historical society. However, many insurance policies have a cap on the problems they'll cover with these changes. The historical society may also decide what materials to use during repairs or renovations, regardless of the cost.
For example, if your historical home becomes damaged during a storm, the historical society may dictate that you use a specific and expensive material for repairs. While your insurance may cover some of the cost, you'll likely have to pay the difference for what they won't cover.
Protect Yourself With Insurance From AAA
Your home is likely your most significant investment, so you want to do everything you can to protect it. Now that you know what homeowners insurance covers and doesn't cover, you can make informed decisions about your supplemental policies. AAA can help you find peace of mind when protecting your home.
AAA insurance has coverage for your home to protect your property from damage. We also have various endorsements and supplemental insurance options to help cover you where homeowners insurance can't. You can choose from three membership levels to find a plan that works for you and your family. Become an AAA member today and start reaping the benefits or browse our insurance options to find the policy that works for you!
