What Does Home Insurance Not Cover?

Most home insurance policies come with a certain type and amount of coverage for homeowners. Coverage limits can be adjusted depending on the homeowner’s insurance needs, but there are many items and incidents that are not included in most basic policies.

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There are four main areas of home insurance:

Liability covers you and your family in case of a claim regarding bodily injury and property damage that occurs on the insured property.

Dwelling coverage provides compensation for loss of or damage to the physical home and its attached structures.
Personal Property coverage provides compensation for loss of or damage to your personal belongings.
Additional Living Expenses cover costs related to having to temporarily move after a disaster.

Flood and Earthquakes

Damage caused by floods and earthquakes are not usually covered by home insurance. This applies to dwelling and personal property coverage. These coverages usually provide compensation for damages due to fire, wind, hail, explosions, falling objects, theft and vandalism.

Not everyone needs flood and earthquake insurance added to their policy. Many areas don’t suffer earthquakes while others do. If your area does suffer earthquakes or floods, you will need to add these insurances separately.

Wear and Tear or Negligence

Home insurance is designed to cover unexpected accidents and disasters. Policies generally do not cover damage to the home or personal belongings that are caused for negligence. For example, if a roof is not upkept and a leak occurs, home insurance is unlikely to cover any damages caused by the leak, as it occurred due to negligence.

Expensive Items

Certain expensive items are excluded or have limited coverage under basic home insurance. Jewelry, furs and art only have limited coverage under home insurance, although these can be covered under additional policy floaters. Home insurance also doesn’t cover paper money or important documents.

Pet Liability

Liability insurance can provide compensation for legal expenses if someone in the home causes bodily injury and property damage to someone else. Unfortunately, many home insurance policies have certain exclusions when it comes to pets. Some exclude exotic pets and even certain dog breeds, such as German Shepherds and pit bulls.

If you have any questions about what your policy does or does not cover, be sure to speak with your insurance agent and review your policy. Live content knowing the limits of your coverage and without worry of an unexpected incident.

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