Common Homeowners Insurance Exclusions and How to Fill the Gaps

Homeowners insurance can be essential for financially protecting your home and belongings from unexpected events. However, many homeowners are unaware of the common exclusions in their policies, which can leave them vulnerable to significant financial losses. Understanding these exclusions and knowing how to fill the gaps can be crucial.

Common Exclusions

Homeowners insurance typically excludes the following:

• Flooding—Standard homeowners insurance typically does not cover damage caused by natural flooding, rain, sewer line backups or sump pump overflows. To protect against these risks, you need a separate flood insurance policy.
• Earthquakes and earth movements—Damage from earthquakes, landslides and sinkholes is typically excluded. You can purchase earthquake insurance or a “difference in conditions” policy to cover these events.
• Pest infestations—Damage caused by termites, rats, bedbugs and other pests is generally not covered. Regular pest control and maintenance can help prevent infestations.
• Mold and wet rot—Mold damage resulting from neglected maintenance or long-term moisture issues is excluded. Proper ventilation and timely repairs can mitigate mold risks.
• Wear and tear—Normal wear and tear or neglect is not covered. Routine maintenance and inspections can be essential to keep your home in good condition.
• Certain dog breeds—Some policies exclude liability for injuries caused by specific dog breeds. Consider additional liability coverage if you own an excluded breed.

Filling the Gaps

The following coverage options can help fill the gaps:

• Flood insurance—Purchase a separate flood insurance policy through the National Flood Insurance Program (NFIP) or private insurers.
• Earthquake insurance—Add earthquake coverage to your policy or buy a standalone earthquake insurance policy.
• Umbrella policy—An umbrella policy can offer additional liability coverage beyond your standard homeowners insurance, helping to cover personal injury and other liabilities.
• Valuable items policy—For high-value belongings like jewelry, firearms and collectibles, consider a valuable items policy for adequate coverage.
• Water backup coverage—Add coverage for water backup and sump pump overflow to your policy.

Learn More

For homeowners insurance guidance near you, contact Hathaway Agency, Inc 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.