Don’t Forget About These Possible Exclusions In Your Home Insurance. There are a number of excluded considerations in home insurance policies. This blog lists out 15+ of them that are commonly excluded. While we don’t know your exact situation, this article is intended to highlight the ones that are sometimes forgotten by the homeowner and the insurance agent.
A good insurance agent that’s experienced knows to ask the right questions to make sure you’re covered for a variety of situations. Give this a read to think about the unthinkables in a different way. The name of the game here is to not forget what might happen so you’re never in a situation where your not covered when surprises happen.
Earth Movement:
What is it? For damage caused by landslides, mudslides and earthquakes
Is there insurance for it? Yes, it is called Difference in Condition insurance
Do I need it? Yes, IF you live in an area that frequently has seismic activity
Ex. California, Washington, Alaska, Hawaii
Law or Ordinance:
What is it? Covers extra costs to rebuild your home after a covered loss (such as a fire, flood, etc) to bring the property up to code (the current safety standards in buildings to maintain safety.)
Ex. New plumbing, new wiring, updated emergency systems
Is there insurance for it? Yes, use this article as a reference when considering law or ordinance insurance.
Do I need it? Yes, IF you live in an older home, if you plan to upgrade or rebuild
water damage from flooding.
Flooding:
What is it? For water damage that comes outside of your home
Is there insurance for it? Yes, flood insurance coverage
Do I need it? YES! It is required in flood prone areas, however is recommended for all homeowners because flood damage is likely to cause more damage on your home than it’s worth
Sewer backups, or water from the ground:
What is it? Water damage due to sewer, drains, pumps, mechanical issues, etc.
Is there insurance for it? Yes, sewer or water backup coverage
Do I need it? YES! It is highly recommended for all homeowners because sewer or water backups are extremely common
How well am I protected against sewage leaks?
Power failure:
What is it? A power outage by a caused by covered loss (such as a tree falling onto your power line)
Is there insurance for it? No, but some insurances may offer reimbursement for spoiled food
Do I need it? N/A however, connect with your agent to learn about your policy
Insurance for Power Failure in The Grid
War:
What is it? War exclusion clause: excludes coverage for invasions, insurrections, revolutions, military coups, and terrorism
Is there insurance for it? Yes, War risk insurance
Do I need it? No, not recommended/necessary, only for parts of the world with high risk of war
Neglect:
What is it? The home owner failed to properly upkeep their property can result in your insurance company denying your damage claim.
Ex. not having a smoke detector, not having a fire extinguisher, not painting your home, etc.
Is there insurance for it? No, because it is preventable
Do I need it? N/A, however if your negligence is ‘reasonable’ (as in what most people would do in your situation) you are more likely to be compensated
Nuclear hazard
What is it? If you live at least 10 miles near a nuclear power plan, you may be in the radius of damage due to a nuclear accident
Is there insurance for it? No, however nuclear plants are required to have liability insurance to cover potential damages for nearby businesses and homeowners in case of a nuclear accident.
Do I need it? N/A
Intentional loss:
What is it? purposefully damaging property or injuring someone
Ex. vandalism, intentional fires, or damaged property in a domestic argument
government action
Is there insurance for it? No, because it is preventable and is often illegal
Do I need it? N/A
Theft under construction:
What is it? your property is considered ‘vacant’ while under construction so theft of watercraft, their equipment, trailers, campers, and the like is not covered
Is there insurance for it? You can acquire insurance on the equipment above but there IS NOT coverage for your personal belongings. So to prevent loss: keep a detailed inventory of valuable possessions with receipts, pictures, bank statements, etc
Do I need it? Only under circumstances of building/rebuilding.
Do You Have Coverage for Home Construction?
Mold or fungus
What is it? Coverage for damage, removal and testing of fungus or mold caused by water damage
Is there insurance for it? Yes, often included with flood insurance. If not, Limited Fungi Coverage includes coverage for damage, removing fungus and testing for fungus
Do I need it? Generally no, if you have flood insurance. Otherwise, it is worth looking into. Connect with your agent on your specific policy.
Does your insurance policy cover mold and fungus?
Wear and tear:
What is it? It is similar to neglect, damage to your house caused by poor maintenance
Is there insurance for it? No, because it is often preventable
Do I need it? N/A
Mechanical break down:
What is it? Appliance breakdowns due to power surges, electrical shorts, mechanical breakdowns, motor burnout or operator error
Is there insurance for it? Yes, equipment breakdown coverage
Do I need it? YES! It is highly recommended.
Does your insurance cover mechanical failure for household machines?
Smoke from industrial operations
What is it? If you leave near industrial operations your home can experience damage due to smoke
Is there insurance for it? No, but you can file a claim or sue
Do I need it? N/A
Discharge from pollutants
What is it? Damage to your home due to pollution
Is there insurance for it? Not for homeowners, however you some incidents may be covered and you can file a claim
Do I need it? N/A
Shrinking or bulging of foundational or walls
What is it? A home collapse may be covered, but structures are not when damage is due to wear and tear
Is there insurance for it? No, but depending on your policy, certain aspects of it may be covered
Do I need it? Talk with your agent about your policy
Does your insurance cover foundation issues?
Feeling a bit concerned about any of these or other issues? That’s quite natural. A seasoned, expert insurance that has advanced training and certifications is well qualified to assess your risk and provide the appropriate coverages for your specific situation. The Weedin Insurance team has some of the most advanced certifications and training in Colorado so we can be there for you before the unexpected happens, not afterwards.
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