What a Homeowners Insurance Policy Doesn’t Cover

When you own a home, we all know it is important to have homeowner’s insurance but there are some things that may not be covered by your policy. You may need additional coverage for some situations.

Many people think their homeowner’s policy will cover damage caused by flooding and sewer backup but most do not. If there is major flooding in your area, there may be some government aid but in most cases, if you do receive any of it, the average amount received is $9,000 to $10,000. That will not go very far if there is major damage to your home. 

Another risk in flooding situations is sewer backup. Again, the damage caused by sewer backup is not covered by your standard homeowner’s insurance policy. It is important to know what the deductibles are and the amount you will receive for repairs and replacement of possessions. If you live in a flood prone area, you may be required to carry flood insurance.

Mold damage is covered by some policies and in some cases it may not be. It is important to determine how much of any your standard homeowner’s policy would cover for mold damage, or if you need additional coverage. Some policies will cover mold contamination if it is the result of a covered peril, such as the cost of cleaning up mold caused by water from a burst pipe.

You usually need additional coverage if you have items such as trampolines or a swimming pool. There are many injuries reported from trampolines which makes it necessary to have a separate policy to cover the trampoline.

If you have a swimming pool or are thinking of getting one, it is important to talk with your insurance agent about purchasing an umbrella liability policy that gives you extra coverage in the event you are sued for injuries caused to others or damages to people’s property. In many cities, it is required to have a locked fence around outdoor pools. Even if your city does not have this requirement, some insurance companies may require it with your policy.

Even though your homeowner’s policy covers possessions, there is a limit to this standard coverage. If you have items such as jewelry, fine art or rare collections that are worth more than $1,000 to $2,000, their full value likely isn’t covered under the standard policy. It may be a good idea to have a separate insurance rider that specifies exactly what type of items you own. Before purchasing the riders, it is important to get each item appraised so you know the amount that each item should be insured for.

Homeowner’s insurance is a very important part of owning a home, but there are some cases where you will need additional coverage.