Homeowners invest in home insurance to cover damage and losses in the event of the unexpected. What most homeowners do not know, however, is that home insurance does not cover everything, and what it does not cover is quite surprising!
If you live in an area prone to earthquakes, you probably already know that your regular homeowner’s policy does not cover earthquake damage. If you live in an earthquake zone (with the exception of California), you can purchase an earthquake endorsement for an additional fee.
Sinkholes are also not covered under a traditional home insurance policy. Sinkhole policies are available for an additional fee though, and they cover home damage and property loss resulting from sinkholes.
Like earthquakes and sinkholes, landslides are not covered under traditional home insurance policies because they are considered a form of earth movement. Landslides coverage is available under a policy add-on referred to as a “Difference in Conditions” (DIC) policy.
Although some policies cover flooding damage, the average homeowner’s insurance policy does not. Flood water is considered any water resulting from storm surfs, hurricane waters, and river surges. Flood damage policies are available as an add-on to a standard insurance policy.
Like flooding, water damage caused by overflow and sewage backup is not covered under a standard home insurance policy. Add-on policies are available to cover these water backup events for an additional cost.
Effects of a Power Outage
The after-effects of a power outage are also not covered by the average home insurance policy, for example – the cost of spoiled food when a refrigerator is without power due to a power company outage.
Most home insurance policies will cover a certain amount of lost food when the power outage results from an event covered under the standard home insurance policy. For example, if a hurricane knocks out the power in your home, causing food to spoil.
Lack of Maintenance
Losses caused by a lack of maintenance to the home are not covered by standard home insurance policies either. Incidents caused by lack of home maintenance include:
- Termites or other insect infestation
- Rodent infestation
Expenses resulting from identity theft are also not covered by the standard homeowner’s policy. Add-on identity theft policies are available for an additional fee, but this coverage is also usually available from your credit card company.
War and Nuclear Hazard
War and nuclear hazards are not events that most of us have to think about, and they are also not covered by the average home insurance policy. There is no add-on policy available for war and nuclear hazard coverage.
Home insurance should give homeowners peace of mind, but before you take comfort in your policy, it is crucial to know what is and is not covered. The best way to get the most out of your policy and ensure that all the necessities are covered, is to work directly with an experienced home insurance agent.