Did You Know Your Home Insurance Does NOT Cover Everything? 

Did You Know Your Home Insurance Does NOT Cover Everything? 

Yes it is true!  There are exclusions and limitations on your home insurance policy.  So check your policy or speak to your agent about your coverage. 

Home Insurance does not cover maintenance or wear and tear.  So if something simply breaks, it is not covered.  For example, if the water heater leaks, your insurance company will not pay to repair or replace the unit.  However, the insurance covers the resulting damage of this leak such as wet or ruined drywall, baseboards and personal property.  Most clients are surprised to hear that their policy does not fix the water heater - it is important to remember that the insurance only covers the resulting damage! 

Home insurance does not cover earthquakes or floods.  Protection for both of these can be added onto your policy.  With flooding, a policy will cover water from a toilet or washer machine overflowing but it will not cover damage if the water entered your home from the outside or if  there was a sewer back up.  

Mold is not covered on many policies.  The policies that do cover it, will have a specific limit for mold coverage and will never pay if the mold is associated with long-term leaks or poor maintenance.  

Bedbugs, termites, mice and vermin are also usually excluded.  Ah Rats!

Government action and war: such as the destruction or seizure of covered property by the government cannot be claimed on your policy. 

A fairly new exclusion to the home policy are “vicious animals”.  Many insurance companies have a list of dog breeds that are excluded from Liability coverage.  With dog bites accounting for one third of all liability claims, be sure that your dog is covered!  The companies that allow all breeds will usually not cover an aggressive dog or one with bite history.  

Your business activities are not covered.  So if you are operating a business out of your home be sure to talk to your agent about separate coverage.  

The full value of your jewelry, watches, furs, gold ware, silverware, guns, collectibles, art and computers are not covered.  There is usually a limit specifically put on high value items, generally only a couple thousand dollars.  You can, however, add additional coverage to your policy to ensure you receive the full value in event of a claim.  

Be sure to discuss what is and what is not covered with your agent!