Common Homeowners Insurance Exclusions

While having insurance can be a life-saver, there are still limits to what insurance policies will cover. If insurance companies covered every possible kind of damage to a home, there would no longer be insurance. Why? Because insurance companies would be paying out so many claims that they would eventually go bankrupt. For this reason, insurance companies have very carefully worded contracts that state what is and what is not covered by your policy. If you’ve never read the contract of your insurance policy, you should read it for your own benefit.

There are multiple kinds of home insurance policies and coverages that vary depending on your insurance company. The following is a short list of risks that are typically excluded from a homeowners policy.

1. Earth movement. What does “earth movement” include?
   • Sinking– the settling of the ground under your home could cause problems to the foundation of your home, which is typically excluded from your policy.
   • Rising–usually this occurs as a result of too much water in the soil, causing the soil to expand. This can also cause problems for the foundation of your home.
   • Shifting
   • Expanding
   • Any kind of mass movements of the earth that causes damage to your home is usually not covered by insurance.

2. Any groundwater that causes the flooding of your home is typically not covered by your homeowner’s policy. However, some insurance companies offer a separate policy that may provide the coverage you need. Contact your independent insurance agent to see if you can purchase an additional flood insurance policy.

3. If hurricanes are common in your neck of the woods, wind damage is often excluded from your policy.

4. Beware of mice, insects, and other critters–should they invade your home, you’re on your own for extermination. Too bad critters don’t pay rent!

5. If the mold occurs due to negligence or poor maintenance, it’s likely you’ll have to pay for the damages out of pocket.

Remember: potentially, there are many more risks that may not be covered by your policy. Always call your independent agent with questions regarding coverages. It’s important that you know what your policy includes and excludes.

We are lucky for the risks that insurance companies do provide coverage for. Without our insurance policies, the quality of our lives would decrease tremendously with the event of a major loss. This information is simply to make you aware and better prepare you for future incidents.

By: KayLynn P.