If you own a home, chances are you have Homeowner’s Insurance, right? Many people think that with this insurance, they are covered for any issues that may arise with their home. However, surprisingly, typical home insurance policies don’t cover compensation for the following things.
Floods
Of course, if there's a burst pipe or a malfunctioning sump pump causing water damage inside the house, insurance companies will provide compensation. However, damage from natural disasters like floods is not covered. For example, if excessive rain causes water to enter the house, or if nearby rivers or reservoirs overflow and cause flooding, it's typically not covered by standard insurance policies. Since the compensation for such cases can be significant, standard home insurance policies often exclude them. Therefore, it's essential to check if the property is located in a flood zone and consider purchasing flood insurance, which may be legally required in flood-prone areas.
Earthquakes
Surprisingly, earthquakes are also not covered by most standard home insurance policies. Similar to floods, earthquake-related damages are usually excluded because the compensation amount can be substantial. However, separate earthquake insurance is available. It's advisable to consider purchasing earthquake insurance, especially in earthquake-prone areas like California. Additionally, many earthquake insurance policies offer discounts or rebates if earthquake-resistant measures are installed in the home.
Mold
While damage from burst pipes, malfunctioning sump pumps, or other internal issues that lead to mold growth is typically covered, mold caused by natural disasters or neglect is usually not covered. Mold resulting from water damage due to natural disasters is not compensated by standard insurance policies. Moreover, mold caused by failure to control humidity or pre-existing leaks in pipes is also not covered.
Sewer Backup
In general, damages caused by sewer backups are not covered by standard insurance policies. If sewage backs up into the house, homeowners often have to pay for cleanup out of pocket. Therefore, it's essential to inspect the sewer lines before purchasing a home, especially for older properties or homes with large trees near the sewer lines.
Wear and Tear
Typical home insurance policies don't cover damages resulting from regular wear and tear during normal use. Damage like holes in walls from moving furniture or broken windows from accidents is usually not compensated. Homeowners insurance typically covers unexpected accidents like fires or floods, not damages resulting from regular wear and tear.
Today, we've looked at five surprising things that homeowner’s insurance doesn't cover.
We'll continue to provide helpful articles in future posts.
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