Purchasing a home is one of, if not the biggest, investments you will make in your life. In fact, one of the first things you do before you finalize the sale is get a homeowners insurance policy. Having home insurance isn’t just a requirement in most cases, but something any responsible homeowner would do anyway to ensure they would be covered if anything goes wrong. The keyword is “anything” because, like everything else in life, homeowners insurance policies can have notable exclusions and exceptions.
It’s important to be aware of common homeowners insurance exclusions so you can obtain supplemental coverage or find other ways to prepare. We take a look at some of the things your homeowners insurance won’t cover.
COMMON HOMEOWNERS INSURANCE EXCLUSIONS
Homeowners insurance policies typically exclude earth movement, for example earthquakes, sinkholes, and mudflows. While your basic home insurance will not cover these types of damages, you can easily obtain added coverage. Earthquake and sinkhole coverage is typically not even a separate policy; it is an add-on to your current home insurance coverage.
Water damage is often not covered by a standard homeowners insurance policy. This ranges from flood damage to sewer system issues. Flood damage can be covered with a flood insurance policy. Water backup and sump discharge or overflow coverage is usually offered as an add-on to your current home insurance policy. Your home insurance policy typically covers certain types of water damages, such as flooding caused by a burst pipe, as long as the incident wasn’t preventable.
Intentional or Preventable Loss
Hopefully it comes as no surprise that your home insurance will not cover any damage that you intentionally cause. In addition, if something occurs and it is deemed by your insurance company as preventable you may not be covered. This proves to be just another reason to maintain the upkeep on your home.
Ordinance or Law
The simplest way to explain this coverage is if your home is deemed no longer up to standard building code or regulations, any claim would not cover the cost of upgrading the damage to meet new building codes. The good news is that you can add a rebuilding ordinance or law coverage endorsement to your policy.
Another common homeowner insurance exclusion is mold. Mold is a problem that grows over time and, because of this, insurance companies see the issue as something that can be prevented, especially before it becomes an issue that affects your home or your family’s health. Do your best to prevent against mold.