When you\u2019re buying insurance, your focus is on protecting your asset, and you might not ask yourself, \u201cWhat does homeowners insurance not cover?\u201d But, in some circumstances, the answer to that question might matter more!<\/p>\n
Chantal Roberts spent 20 years in leadership at major insurance companies educating claims partners and overseeing training before becoming an expert witness<\/a> for those involved in the insurance claims process. She warns homeowners that despite what an insurance agent may promise, \u201cThere is no such thing as an \u2018all-risk\u2019 policy. It\u2019s the \u2018Everything-is-Covered-Except-What\u2019s-Excluded-Policy,\u2019 which is not nearly as sexy. So, homeowners get very upset when they learn they have exclusions.\u201d<\/p>\n It\u2019s usually best to figure out what\u2019s covered (and what\u2019s not) well before you need to know; we\u2019ve rounded up the biggest things that homeowners think should be covered by their insurance policy\u2026but aren\u2019t.<\/p>\n \n\n\n\n\n We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. It takes just two minutes to match you with the best real estate agents, who will contact you and guide you through the process.<\/p>\n \n Homeowners insurance companies can\u2019t predict acts of nature<\/strong> \u2014 like a lightning strike \u2014 and often exempt them from coverage. Therefore, in our example, the cost of tree removal and repairing your garage would be your responsibility. These \u201cacts of God\u201d are forces of nature that man can\u2019t control.<\/p>\n Roberts explains that acts of God are \u201cgenerally excluded because there isn\u2019t a good way to protect the asset (house) from that peril. You can\u2019t move a house if a hurricane is coming.\u201d<\/p>\n When you bought your house, the seller should have provided you with a natural hazard report<\/a>, and it could give you some clues to what hazards you might face in your new home.<\/p>\n If you bought a home in a flood zone<\/a>, you will need to purchase additional protection. Standard homeowners policies don\u2019t cover flood damage<\/strong>. If you have a mortgage<\/a> on the house, your lender will require you to buy protection through the National Flood Insurance program<\/a>.<\/p>\n The amount of coverage you\u2019ll need, as well as your premiums, will depend upon your new home\u2019s flood zone.<\/p>\n Standard homeowner\u2019s insurance doesn\u2019t cover earthquake damage or destruction<\/strong>, even if you live in a fault zone<\/a>. States like California require homeowners to purchase separate earthquake insurance.<\/p>\n If sinkholes<\/strong> open up your property, any damage they cause won\u2019t fall under homeowners insurance unless you bought a sinkhole rider (also called an endorsement).<\/p>\n In some policies, you won\u2019t be able to file a claim for simultaneous natural disasters<\/strong>. For example, you can\u2019t file a claim for both wind and water damage at the same time \u2014 which could be a problem if you live in a hurricane-prone area.<\/p>\n As a homeowner, you\u2019re responsible for routine maintenance<\/a>. If neglected maintenance<\/strong> leads to damage, under replacement cost coverage, you\u2019re reimbursed the damaged item, less depreciation. \u201cIf the house is well-maintained, there will be less depreciation taken at the front end of the claim settlement process,\u201d Roberts explains. So, you\u2019d get more money back.<\/p>\n![\"homelight](\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\"){kind=logo}
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Natural disasters typically excluded<\/h2>\n
Flood damage<\/h3>\n
Earthquakes or sinkholes<\/h3>\n
Simultaneous catastrophes<\/h3>\n
Home maintenance-related exclusions<\/h2>\n