Which area is not protected by most homeowners insurance?

This article lists common areas that homeowner's insurance covers, and those it doesn't.

3 min read
Which area is not protected by most homeowners insurance?
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Homeowner’s insurance can cover the financial fallout due to a home fire or break-in. These events could lead to replacement, rebuilding, and repair expenses.

Your homeowner’s insurance can cover you if someone takes you to court for an injury or property loss.

This article lists common areas that homeowner's insurance covers, and those it doesn't.

What is not covered by house insurance?

1. House damage resulting from neglect

If a homeowner neglects their house, it can lead to significant damages, such as mold or pest infestations. These issues usually aren't covered by insurance but are the owner's fault.

Mold grows quickly with water damage or burst pipes. If you, as the homeowner, don't notice it and fail to fix it fast enough, your insurance won't cover the cost of the repairs.

2. Earthquakes, landslides, and sinkholes

Insurance carriers are hesitant to cover events such as earthquakes or landslides in full because they happen quickly and affect a large number of homeowners.

Travelers concerned with earthquakes might have a higher risk of extreme events in California. Earthquake insurance is standard and essential in this area to cover these potential events.

3. Sewer Backup

Sewer flooding can happen when there is significant rainfall or melting snow, or when there is debris in your sewer lines. Sewing backups can cause significant home damage, including the condition of a basement or any area where the water enters.

The repairs are sometimes at the expense of the homeowner, but they could also be at your municipality’s expense.

If your home insurance does not cover sewage backup, you may be able to purchase a separate flood insurance policy.

4. Expensive jewelry or artwork

When you buy content insurance, it includes coverage for the stuff inside your home. Some items are excluded from this policy and require a separate insurance policy because they may be expensive to replace (like artwork) or may be targeted by thieves (like jewelry).

4. Business equipment

If you're a business owner, your home insurance policy doesn't cover company assets. If you are a consultant and have to have a home office somewhere, you might not be covered in the event of a fire or burglary because it's covered by a business insurance plan.

Having home insurance is a vital part of owning a home. You can protect yourself financially if your house is destroyed and you will have protection in cases of theft, lawsuits, and natural disasters. In order to make sure the coverage you buy is enough, be sure to learn what it does not cover.

What is covered by home insurance?

1. Home

Homeowner’s insurance pays for repairs or rebuilding of your home in case you experience an unexpected event, such as a fire, flood, or natural disaster.

If you are affected by an event that destroys your home and leaves you without any place to live, a homeowner’s policy may offer additional coverage.

For example, the insurance provides cash for other living expenses such as a hotel stay or rental. The policy usually covers property losses that happen due to events such as hailstorms or vandalism.

2. Contents insurance

Homeowner’s insurance adds protection to everything inside the home. If there is a fire or burglary, homeowner’s insurance can cover the things that you need to rebuild and replace.

The coverage also extends to unexpected events such as floods from a burst pipe, earthquakes, and more. The contents insurance is of two types – Replacement-cost coverage and Actual Cash Value Coverage.

Replacement-cost coverage will provide enough compensation to replace whatever has been destroyed or stolen, without considering depreciation.

Though comprehensive coverage considers depreciation, the amount of your payment if your five-year-old TV is stolen may not be enough to purchase a brand new one.

3. Liability coverage

Slipping on a doorstep is not just annoying, but can lead to serious injuries and possible legal action. If one of your guests slips and falls on your doorstep, this person may sue you for damages.

Insurance helps cover the cost of recovering from a lawsuit, with its liability coverage. Homeowner’s insurance can take on the financial burden for you, which covers legal fees and awards.