The standardhomeowners insurancepolicy, also known as an HO-3, covers your home for multiple perils, but there are some important exclusions. Knowing what's covered and what isn't can save you a lot of money and heartache down the line.
Earthquake and water damage
In most states, earthquakes, sinkholes, and other earth movements are not covered by your standard policy. Earthquake insurance can be purchased as an endorsem*nt (an addendum) for an additional fee in all states except California. Flood insurance, which also includes mudflow, must be purchased as a separate policy and is available only through the government-run National Flood Insurance Program.
Other types of water damage are also excluded. If you have overflows or backups from your sump pump, sewer system or drains, your standard policy will not cover the damage. Coverage may be available, however, by adding a separate endorsem*nt.
Maintenance issues
Taking proper care of your home can keep you from having to pay for costly repairs your homeowners insurance won't cover.
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. Damage caused by smog or smoke from industrial or agricultural operations is also not covered.
If something is poorly made or has a hidden defect, this is generally excluded and won't be covered. The same applies to any mechanical breakdown.
Additionally, if your home should suffer a power outage, things like food spoilage are not covered under a standard policy.
Other exclusions
While it's not something anyone wants to contemplate, damage caused by war or nuclear hazard is not covered by your homeowners insurance. Expenses incurred due to identity theft are also not included, but you can purchase this coverage as an endorsem*nt.
If you own a watercraft, your policy will typically provide up to $1,000 of coverage if it's stolen from your home, but will not cover theft from another location. Additionally, most policies will provide liability coverage for crafts with less than 25 horsepower.
Minimal coverage
Minimal coverage is provided for the following:
- Valuable property - firearms, furs, watches, silverware, and gold. A standard policy provides $1,000 for theft of jewelry.
- Replacement cost - Most policies use an actual cash-value basis to determine the settlement amount of any lost or damaged items, which takes into consideration depreciation. A replacement cost endorsem*nt can be added to a policy, which will pay claims based on the cost to replace certain lost items without factoring in depreciation.
- Higher liability and medical payments - Liability for the medical expenses of third parties and legal bills for defense against claims can be astronomical. Increasing your liability policy limits can protect your financial future.
For additional coverage, endorsem*nts can be added to your policy.
This information is provided for your convenience and is not intended as insurance advice. The views, opinions, and advice expressed in this article do not represent those of Homesite Group Incorporated. Please consult your insurance carrier or agent for information regarding your policy or coverages.
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 is not covered by standard homeowners insurance? ›
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 not included in a standard homeowners policy? ›
A standard policy will not pay for damage caused by a flood, earthquake or routine wear and tear. When purchasing coverage for the structure of your home, remember this simple guideline: Purchase enough coverage to rebuild your home.
Which of the following perils is not covered under a standard homeowners policy? ›
Damage caused by most disasters is covered but there are exceptions. Standard homeowners policies do not cover flooding, earthquakes or poor maintenance. Flood coverage is provided by the federal government's National Flood Insurance Program, although it is purchased from an insurance agent.
Which would normally not be included in a standard homeowners insurance policy quizlet? ›
The damage from normal wear and tear is one of the excluded perils from a typical homeowners' insurance policy.
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.
Which of the following does a standard homeowners insurance policy cover? ›
Well, homeowners insurance helps protect you, your home and your belongings from all sorts of unexpected events. And with a standard policy you'll get four key types of coverage: dwelling, other structures, personal property and liability.
Which is not true about homeowners insurance? ›
Rumor: My homeowner's insurance includes flood insurance.
This is not true. Homeowner insurance policies do not normally cover flood damage. Flood insurance is typically a separate policy.
What is not covered under a dwelling policy? ›
Note: Dwelling coverage on standard policies typically won't protect against damage caused by floods, earthquakes, sewer backups, or lack of maintenance. Learn how flood insurance works and what to do if your home is damaged in an earthquake.
Which area is not protected by most homeowners insurance? ›
These are the areas that are not protected by most home insurance.
- Flooding. ...
- Earthquakes. ...
- Business equipment. ...
- Jewelry or artwork. ...
- Power outages. ...
- Nuclear hazard. ...
- War. ...
- Dog bites. Most homeowner insurance covers medical bills and legal fees caused by dog bites.
Coverage for “open perils”— and similar terms such as "all perils," "all risk," or "special perils," coverage — means that damage or loss from all potential perils may be covered unless specifically excluded in the insurance policy. Flooding is an example of a peril generally excluded from coverage.
Which of the following coverages is included in the homeowners policy but is not included in an unendorsed dwelling policy? ›
Which of the following coverages is included in the homeowners policy but is not included in an unendorsed dwelling policy? Liability & theft.
Which two types of natural disasters are not normally covered in a homeowners policy? ›
A: Your home insurance policy covers many natural disasters and weather events, including wind, hail, lightning strikes and wildfires. However, it does not cover damage caused by floods or earthquakes. You would need a separate policy for each of these perils. Many homeowners may not realize this until it's too late.
Which of the following is not covered by a standard title insurance policy quizlet? ›
Which of the following is NOT covered by a standard title insurance policy? The answer is unrecorded rights of parties. Unrecorded rights of parties in possession are covered by an extended coverage policy. The answer is two.
Which of the following is not part of an insurance policy? ›
Final answer: A Certificate of Authority is not a part of an insurance contract. It is a document from a state's regulatory body that licenses an insurance company to sell insurance. Instead, an insurance contract includes the Policy, Application, and Riders.
Which of the following does not have a standard coverage form? ›
Which of the following does not have a standard coverage form in common use? Umbrella policy.
Which one is not protected by most homeowners insurance? ›
5 Things That Are Not Covered by a Standard Homeowners Insurance Policy
- Floods.
- Earthquakes.
- Home businesses.
- Everyday wear and tear.
- Home neglect.
BOPs do NOT cover professional liability, auto insurance, worker's compensation or health and disability insurance.
