A standard home insurance policy is designed broadly, to cover common risks to the home and liability for its occupants. However, exclusions exist to define where protection stops. It insures the home and outbuildings as well as guarding the personal liability of the occupants, but limitations should be understood.
Flood
At the mention of flood insurance, most imagine a major event, something that makes headlines. However, flooding caused by rain, storm surge, tidal waters, and other sources can affect small areas just as easily. Even mud flow can be considered flooding. The vast majority of homeowners policies do not cover flood damage, simple as that. However, flood insurance is widely available through the National Flood Insurance Program (NFIP) and the ever-expanding private market.
Expert Tip: In a home insurance policy, flood is excluded as “water damage”, which can also include backups from a sewer system or drain. Coverage for these can easily be added to most home insurance policies simply by requesting it. Also excluded is damage caused by pressure from groundwater, such as to a foundation or swimming pool.
Earthquake and Sinkhole
Earthquakes and sinkholes are excluded from standard homeowners insurance policies. Like flood insurance, this coverage can be purchased separately for an additional fee.
Dogs
Because home insurance includes liability protection for the owners, insurance companies pay close attention to the kind of animals they keep at the house. Should those animals injure other people or damage their property, such liability is covered under most policies. If an owner’s dog bites a neighbor, homeowners insurance will protect them.
However, if an owner’s dog chews through their own home’s drywall or breaks through a fence, such repairs will not be covered. Notice the difference: if the animal hurts someone else or damages someone else’s property, that is covered. But if they injure one of the home’s occupants or damage the home itself, that is not covered.
Expert Tip: Due to the number of dog bite claims, some insurance companies will not quote homes with dogs of certain breeds, while others will exclude liability for dogs altogether. Ask your agent.
Maintenance Issues
In the same way auto insurance does not pay for new tires, home insurance does not cover routine maintenance. Even roofing is meant to wear out. Thus, unless it is damaged in a storm, fire, or other one-time event, replacing a roof is the responsibility of the homeowner. In fact, home insurance companies expect owners to properly maintain a home and exclude damage caused by neglect. The following policy exclusions illustrate this fact:
Damage caused by
- Birds, vermin, rodents, insects, termites
- Wear and tear, marring, and deterioration
- Mechanical breakdown
- Rust, corrosion, and dry rot
- Frozen pipes, if the owner does not use reasonable care to maintain heat in the home
- Mold, fungus, and wet rot
Other Exclusions
Damage caused by war or nuclear hazards are excluded. Identity theft and related expenses are also not covered. Should these be of concern, most policies can be expanded (endorsed) to provide protection.
For any homeowners insurance questions, contact your Bankers Insurance agent. Not a client of ours? Let us compete for your business! Each of our clients is assigned a personal insurance agent and provided their email address as well as a phone number that rings right on their desk.
Was this post helpful?
- Share it using the links below
- Review all our personal insurance posts
- Subscribe to our newsletter
I’m planning to purchase a single-family home, which is why I’m also thinking of buying home insurance so my valuables will be protected. Although, thank you for elaborating here that mechanical breakdown and frozen pipes will not be included in the coverage. I’m glad you were able to share here that identity theft is also excluded from the insurance.
Glad the info was helpful. Just to be clear, frozen pipes are covered under homeowners policies. The frozen pipe exclusion arises when reasonable care has not been taken to maintain heat in the home. So if a snow storm comes and electricity is lost and pipes freeze as a result, most homeowners policies will cover the resulting damage since the lack of heat wasn’t due to negligence of the owner. Also, mechanical breakdown can be endorsed (added to) most homeowners insurance policies now for an extra charge.
Thanks for pointing out how you can indeed get earthquake and flood insurance for your home. I want to live near the coast but I have heard that there are quite a few earthquakes around there. I’ll look into getting specific insurance for these catastrophes along with my basic insurance.
https://www.comaltex.com/homeowner-insurance