If you have homeowners insurance, you must know about everything it excludes!
Homeownership is one of the best (and most expensive) things ever. It’s a big investment, and with so many unexpected disasters that could damage it, insurance is a must-have safety net. While policies are different from one company to another, most follow the same basic rule—if a catastrophe strikes, like a burglary or a fire, your coverage can help you pay for replacement or repairs.
According to experts, the majority of plans include liability protection, saving you from substantial medical or legal bills in case someone gets injured on your property. But there’s always a catch, and this is no exception to the rule—homeowners insurance doesn’t cover everything, so make sure you always read the fine print.
Some people were shocked to discover that their insurance won’t take care of certain natural disasters, as they require separate policies. Not to mention, some protections only kick in if you add them to your plan.
So, before you sign your homeowners insurance documents, you’d better go over the policy with an agent and ask about any possible gaps in coverage. You might be surprised by how many things are not included. If you want to discover the most common terrible scenarios that homeowners insurance won’t cover, keep reading:
1. Corroded pipe damage
Water damage is one of homeowners’ worst nightmares, and insurance is usually their safety net when disaster strikes. Most homeowners insurance policies will cover repairs and replacements if a pipe suddenly bursts, but here’s the catch: not all water damage is covered.
If the issue was a result of negligence, such as ignoring long-standing leaks or failing to replace corroded pipes, your claim could be denied. And it’s not just the pipes—insurance won’t cover the resulting damage either, so you’ll be left with a costly mess to clean up.
You should have your pipes inspected regularly and don’t postpone repairs if they’re corroded. Even though it might seem like they can do their job just fine, corrosion will slowly but surely weaken the pipe walls. After that, it’s only a matter of time before disaster strikes.
Surely, you won’t want flooded water to destroy your walls, ceiling, electrical wiring, and belongings, especially considering how expensive and time-consuming all these repairs and replacements are. Remember to have regular inspections—better safe than sorry!
2. Pests
Another thing your homeowners insurance likely won’t cover? Pest damage. If termites are eating through your walls or rodents are gnawing on your electrical wires, you’ll have to foot the bill for extermination and repairs yourself.
Even though homeowners insurance policies will take care of structural damage caused by unexpected events, many companies think infestation is a problem that could’ve been prevented in the first place, meaning it’s on you to take action before it gets out of hand. However, some policies might cover damage caused by pests in certain situations, like if rodents chew through electrical wiring and start a fire.
Prevention is key either way, so don’t wait for trouble to creep in! Keep pests at bay by eliminating food sources and sealing any gaps they could use to enter your home. Rodents are tiny and can easily squeeze through holes a fraction of their size. Grab that caulk and seal up even the smallest cracks around your home.
As for termites, make sure you only use treated wood for your home and deck, and keep your beautiful plants and mulch at least a few feet away from your home.
3. Vandalism
Vandalism can take many forms. Whether it’s a smashed window from an attempted break-in or graffiti on your siding, it’s never pleasant. Since people can be unpredictable, homeowners insurance typically covers damage caused by intentional acts of vandalism.
But hey, there’s a catchy! While your policy more likely protects against acts of vandalism when your home is unoccupied, things are different when your property is considered vacant, meaning you moved out and took all your belongings with you.
You should check the rules for your state because regulations can vary. In most states, once your home has been vacant for 30 to 60 days, that portion of the coverage may be lost, and you will need to handle the damages yourself.
In case you’re in the process of moving or selling, check your homeowners insurance policy to avoid any unexpected (and costly) surprises! If you plan to leave your home vacant, check in with your insurance agent to see what options you have. In some cases, you may be able to get vacant home coverage, which can protect your property until you return, move, or sell it.
4. Earthquakes or sinkholes
Even if you don’t live in an area known for earthquakes, they can strike anytime, anywhere. In fact, at least 39 states have experienced an earthquake since 1990—but not all homeowners insurance policies cover damage caused by Earth’s movements.
You can purchase separate coverage for earthquakes and sinkholes, but keep in mind that these policies typically only cover structural damage. That means if your belongings are damaged in the quake, you’ll have to cover the cost of replacing them yourself.
While it’s not mandatory to purchase earthquake insurance, experts usually recommend you have one, especially if you live in a place where these occur often. If you’re on the fence about whether to pay for one or not, check the location of your property on one of the Federal Emergency Management Agency’s (FEMA) earthquake hazard maps to have a better idea of the potential risk.
…Keep reading to discover other risks that your homeowners insurance might not cover! But brace yourself, because you might be shocked by what comes next!
5. Flood damage
According to the FEMA, floods cause more damage than any other weather-related disaster. Believe it or not, just one inch of floodwater can rack up $25,000 in repairs for the average home. But here’s the thing: regardless of the high risks and staggering costs, standard homeowners insurance policies don’t cover flood damage.
Even though natural flooding isn’t always included on the list, some policies might cover unexpected water damage, such as an overflowing appliance.
If you live in a high-risk flood zone, you’d better have flood insurance. But don’t forget that flooding can happen anywhere, so if you live near a lake, river, or even in a low-lying area, having coverage is a smart idea.
Some insurers allow people to add flood protection to their existing policies, while others ask for a separate plan. Being prepared is always key, so make sure you check in with your provider before a disaster strikes.
6. Sewer backups
Sewer issues can happen for a plethora of reasons, such as clogged pipes or sump pump failures, and they’re always a pain to repair. While many people assume their homeowners insurance will cover sewer backups, it’s not always the case. According to experts, the reason why standard policies don’t cover this is because they consider it a separate risk that requires extra coverage.
It’s best to talk to your provider to make sure that you’re protected, as this optional add-on helps cover the cost of repairing the sewer line and cleaning up the mess. Keep in mind that the insurance company will still investigate the cause of the disaster, and not all situations will be covered, especially if the damage was a result of negligence.
Always keep your plumbing in check—flush only toilet paper and toss non-degradable items in the trash. Moreover, regular inspections are key to avoiding potential problems, so don’t underestimate them. Other than that, install a backwater prevention valve to save you some headaches down the line.
What are your thoughts on these risks your homeowners insurance policy doesn’t cover? We would like to know what your thoughts are, so leave a comment below, and let’s chat! Until next time, here’s another great post from The Home Team you won’t want to miss: 7 Things That RUIN Your Floors
