3 Things Your Homeowners Insurance May Not Cover

Posted on: 21 February 2023

Purchasing a home is usually one of the most significant investments people make. Your mortgage lender will require you to buy home insurance before moving into your new house. When you purchase your homeowner's insurance, you often think that you have nothing else to worry about since anything that happens is covered. Unfortunately, this is not true. There are numerous things your policy will not cover unless you purchase additional coverage. 

1. Certain Natural Disasters

Most home insurance policies automatically exclude certain natural disasters from coverage. These include:

  • Flooding
  • Earthquakes
  • Sinkholes or other earth movements

Other disasters, such as wind damage, may not be covered in certain areas due to the frequent occurrences of these events. Make sure you know what is and is not covered by your policy. If you need home insurance coverage in any of these areas, you can add an additional policy or purchase a rider to your existing policy. 

Your lender may require you to purchase additional coverage if you are in an area susceptible to these damages. For example, if your new home is in a flood zone, your lender will probably make you purchase flood insurance. This home insurance not only protects you but protects them from a potential loss as well. 

2. High-Value Jewelry

If you lose your jewelry due to theft or other covered peril, your homeowner's insurance may only cover it up to your policy limits. Unfortunately, most people own far more jewelry than what their policy covers. Most policies cap the amount of coverage you have on jewelry and will only pay after you meet your homeowner's insurance deductible. 

For example, unless you purchased inexpensive wedding sets, your engagement ring and wedding bands may exceed the $1,000 to $2,000 worth of coverage your policy includes.

Just think of other valuable pieces you may own. While policies vary, most caps are really low. You can add an insurance floater to your existing homeowner's insurance policy. A floater will not only eliminate the need to pay your insurance deductible but may also increase your coverage for accidents and other risks. 

You may also take out a separate jewelry protection insurance policy. This policy would provide even more coverage for events, accidents, and unintentional damages. 

3. Hazardous Items

Another area many homeowners need to realize they do not have coverage is some of the common hazards you may have in your home. Some of these may include the following:

  • Trampolines
  • Diving boards
  • Aggressive dog breeds

These vary by policy. Some policies provide coverage with conditions. Others offer coverage because they have no exclusions, while others still have no coverage at all. Review your policy to ensure you are covered before you face an accident in one of these areas.

For more information, contact a home insurance provider near you.


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!