This Week is the second article in the Home Insurance Basics series.
Common Home Policy Exclusions:
- Floods: Damage from floods (heavy rain, storm surges, overflowing bodies of water, sewer backup from heavy rain) is generally excluded from standard policies. Homeowners need a separate flood insurance policy, often available through the National Flood Insurance Program (NFIP) or private insurers.
- Earth Movement: This exclusion covers damage from earthquakes, landslides, mudflows, and sinkholes. Separate earthquake insurance or an endorsement may be available for purchase, especially in high-risk areas like California.
- Wear and Tear / Neglect: Insurance is not a home warranty. Damage that occurs gradually over time due to a lack of maintenance, deterioration, rust, rot, or aging (e.g., an old roof leaking, a slow pipe leak causing mold) is excluded.
- Pest Infestations: Damage from insects, rodents, termites, and other vermin is typically considered a preventable maintenance issue and is not covered.
- Mold: Mold damage is usually only covered if it results from a sudden and accidental covered peril (e.g., a burst pipe). Mold resulting from high humidity, long-term leaks, or general neglect is excluded.
- Sewer and Drain Backups: Water damage from backed-up sewers or sump pump overflow generally requires a specific endorsement or separate policy to be covered.
- High-Value Items: Standard policies have coverage limits (sub-limits) for specific categories of high-value items like jewelry, fine art, collectibles, and firearms. To fully protect these items, you often need to purchase a "scheduled personal property" endorsement.
- Intentional Acts and Illegal Activity: Damage caused intentionally by the homeowner or members of the household is excluded. Engaging in illegal activities may also result in denied claims.
Even though the above exclusions are part of the standard home policy, endorsements can be added to the Policy in most cases to provide protection (Earrh Movement, Sewer and Drain Backups for example).
Give us a call (770-339-4333 or email danny@dknightinsurance.com) to see if we can help You with your home insurance needs.