Q. What about floods, earthquakes and other catastrophes?
A. Many homeowners policies cover damage caused by "just about anything," unless specifically excluded. Most catastrophes are covered. For example, wind damage from hurricanes or tornadoes is covered as a windstorm peril.
But, flood damage and earthquake damage are NOT covered by a standard homeowners policy. A separate policy is required.
Q. Why aren't floods and earthquakes covered by my homeowners policy?
A. Flood and earthquake activity is more widespread than many people realize. Nine out of ten Americans live in seismically active areas. Since 1900, earthquakes have occurred in 39 states and caused damage in all 50. And if your home is located in a flood-prone area, you are 26 times more likely to suffer flood damage than fire damage.
You may want to check with your agent about special catastrophic policies for normally excluded conditions like floods and earthquakes.
Q. Are there any other exclusion I should know about?
A. There may be other exclusions spelled out in your policy such as neglect, intentional loss, "earth movement (landslide)", general power failure and even damage caused by war. If you neglect to take care of your property (i.e., a leaky roof), you may not be covered. Obviously, if you intentionally lose an object or damage your property, there is no coverage.
One other exclusion that can be costly is the "Ordinance or Law" exclusion. Building codes that drive up the cost of rebuilding or repairing may not be covered by your insurance policy. Thus, if you discover when replacing damaged property that current law demands higher-grade or more expensive materials than the original ones being replaced, the new materials may not be covered for the full price.
For example, if you must replace all the wiring in your home following a fire, and the current building code in your area requires a higher grade of electrical wiring, your policy may cover only the cost of replacing the older wiring. The difference in cost between the old wiring and the new wiring required by ordinance or law is your responsibility.
Laws and building codes are constantly being updated. Coverage to include ordinance or law requirements can be added to your homeowners policy with an endorsem*nt-an addition that could save you money in the long run.
FAQs
Many things that aren't covered under your standard policy typically result from neglect and a failure to properly maintain the property. Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered.
Which of the following would not be covered by a homeowners policy? ›
Standard homeowners insurance does NOT cover damage caused by flooding, earthquakes, termites, mold, or normal wear and tear.
What is excluded on a homeowners policy? ›
Common exclusions in even the most comprehensive homeowners policies include: earth movement, such as earthquakes; sinkholes or landslides that damage your home; water damage, such as floods or sewer back-ups that leak through a pipe or seep through the foundation causing damage to your home; damage resulting from ...
What disasters usually aren t covered by homeowners insurance policies? ›
Homeowners insurance will usually cover damage to the dwelling and personal property. A resulting explosion or fire should also be covered. Earth movement, landslide, tremors, mudslide or earthquake caused by a volcano is not usually covered under homeowners insurance.
What is typically not covered by homeowners insurance? ›
Homeowners insurance doesn't cover floods, earthquakes, typical wear and tear, and damage due to insufficient maintenance. You can usually add flood and earthquake coverage to your policy for an additional fee, but wear and tear and damage from a lack of maintenance are considered preventable.
Which event is not covered by a homeowners policy? ›
Most catastrophes are covered. For example, wind damage from hurricanes or tornadoes is covered as a windstorm peril. But, flood damage and earthquake damage are NOT covered by a standard homeowners policy.
What is excluded from coverage? ›
An exclusion is a provision within an insurance policy that eliminates coverage for certain acts, property, types of damage or locations. Things that are excluded are not covered by the plan, and excluded costs don't count towards the plan's total out-of-pocket maximum.
What are typical exclusions in an insurance policy? ›
Typical examples of excluded perils under a homeowners policy are flood, earthquake, and nuclear radiation. A typical example of an excluded loss under an automobile policy is damage due to wear and tear.
What is not covered under a dwelling policy? ›
Dwelling coverage only applies to structures attached to your main residence, meaning that detached garages, sheds, barns, unattached guest homes, fences, or any other detached structures are typically not covered under dwelling coverage.
What is the most common damage to your home that insurance does not cover? ›
Damage or destruction due to vandalism, fire and certain natural disasters are all usually covered. So is your liability if someone is injured on your property. Certain catastrophes, like flooding or earthquakes, are generally not covered by basic homeowners policies and require specialized insurance.
HO-5 (comprehensive form)
The HO-5 policy offers more protection than any other type of homeowners insurance.
What is usually excluded from typical homeowners insurance? ›
Earthquakes, landslides and sinkholes generally aren't covered under home insurance. Exceptions include Florida and Tennessee, where insurers must offer optional sinkhole protection. Aside from that, you'll need separate coverage for these disasters, which your insurer can help you find.
What are the risks not covered by insurance? ›
An uninsurable risk could include a situation in which insurance is against the law, such as coverage for criminal penalties. An uninsurable risk can be an event that's too likely to occur, such as a hurricane or flood, in an area where those disasters are frequent.
Which two perils are not covered under a standard homeowners insurance policy? ›
Perils Generally not covered by a Homeowners Policy if Damage is caused by: Flood. Earthquake. Earth movement.
What does homeowners insurance not cover quizlet? ›
Typical homeowners insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms and hail. But, it's important to know that not all natural disasters are covered by homeowners insurance. For example, damage caused by earthquakes and floods are not typically covered by homeowners insurance.
What exposures are not covered under a homeowners policy? ›
Among the options given, medical payments to an insured party, or the actual homeowner, is the exposure not covered under a homeowner's insurance policy. Homeowners insurance is designed to cover property risks and liability issues, but not personal medical costs.
Who is not an insured on a homeowners policy? ›
Your homeowners policy does not cover tenants. Tenants need to purchase a separate renters policy to protect their belongings in case the home is damaged.
What coverage under a homeowners policy would cover? ›
Coverage for your personal belongings
This covers things inside your home like furniture, clothes, sports equipment, and other personal items that are stolen or destroyed by fire, hurricane, or other insured disasters. The coverage is generally 50 to 70 percent of the insurance you have on the structure of the house.
