After a dry fall here, we’ve had a ton of winter rain. No snow unfortunately, but several times we’ve had inches of rain fall within a 24-hour period. Fortunately, the results were nothing like you see in California when rain falls. Yet I read where some people there said their losses weren’t covered. It made me wonder, what else isn’t covered by our seemingly-comprehensive home insurance?
Earthquakes
People in California already know this, but normal home insurance policies don’t cover earthquake or earth movement damage. Similarly, if you are in a state that experiences sinkholes or landslides, these perils are also not covered. If you live in an area with active fault lines or where earth movements occur, you can purchase additional insurance through your insurer or perhaps through the state.
Flooding – outside source
If you live near a river, in a low-lying area, or on the coast, you may have experienced flooding due to excessive rainfall. Damage from flooding is not covered by your home insurance policy. However, people can purchase flood insurance through the government’s National Flood Insurance Program or through a private insurer. If you purchase a home in a flood zone, you may be required to purchase this insurance.
Flooding – inside source
Flooding from a leaky pipe is more nebulous. If a pipe were to burst or if the leak is sudden or accidental, then most home insurance will cover the damage. However, if you have a slow leak and do not repair it until your floorboards are warped, you will be footing the bill.
One concern here is the insurance company may try to label your sudden flood as a result of poor maintenance. When we had a shower drain that suddenly separated and caused a leak into two rooms, our insurance company tried to claim we were negligent. Our plumber was able to explain to them that this was a sudden occurrence that we could not have predicted.
Mold
Mold closely follows the above-mentioned flooding categories. If it’s the result of a sudden accident then it’s covered. Mold that results from a long-term maintenance issue usually isn’t covered.
Dog Bites
If you own a dog labeled as aggressive, such as a Pit Bull or Rottweiler, most insurance companies won’t cover you if your dog bites someone. Even for covered breeds, the coverage is limited to your liability coverage.
Expensive collectibles or jewelry
Most policies I’ve read won’t even cover the cost of the average engagement ring, much less a Rolex or other expensive jewelry. Many insurers limit their coverage to $1,500-$2,500. For jewelry, expensive artwork, guns, and other specific items you would need additional coverage, often after having the items appraised.
Office equipment
If you run a business out of your home, most insurance policies provide $2,500 in coverage for business-specific equipment or inventory. You can increase it through your homeowner’s policy or purchase a separate business policy if your inventory and equipment are substantial.
Reading through an insurance policy is something no one wants to do until they are denied a claim. Even if you think you are covered – like we did with the bathroom pipe – you may have to fight to get what you deserve. Knowing upfront where you might need to supplement your coverage can hopefully save you from some of those fights down the line.
Photo by Serge Lavoie