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.
What coverage is not included in a standard homeowners policy? ›
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 of the following is not covered by standard homeowners insurance? ›
Standard homeowners insurance does NOT cover damage caused by flooding, earthquakes, termites, mold, or normal wear and tear.
What is not covered by a standard homeowner's hazard insurance policy? ›
While hazard insurance covers many risks, it may exclude certain perils, especially in high-risk areas. Common exclusions include: - Floods: Standard policies do not cover flood damage, requiring separate flood insurance. - Earthquakes: Earthquake damage is typically excluded, necessitating additional coverage.
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 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 coverage bundles are included in a standard homeowners policy? ›
Generally, a homeowners insurance policy includes at least six different coverage parts. The names of the parts may vary by insurance company, but they typically are referred to as Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability and Medical Payments coverages.
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.
Protecting that investment from fire and other perils is extremely important. Please note, homeowners insurance policies do not provide protection against losses from floods, earthquakes, mudslides, mudflows or landslides. You can learn more about what homeowners policies cover in this guide.
Who is not an insured on a homeowners policy? ›
Although your homeowners policy covers many people, there is one group who generally isn't covered--tenants. To protect their belongings in case your home is damaged, renters will need to get a separate renters insurance policy.
What Disasters Are Not Covered by Homeowners Insurance? Flood damage and earthquakes aren't covered in a standard homeowners insurance policy. You would instead need to buy separate flood insurance or earthquake insurance on top of a home insurance policy.
Which of the following perils is not covered under any of the standard homeowners forms? ›
Earthquakes, sinkholes, and earth movements: Standard homeowners insurance policies typically don't cover damage caused by earthquakes, landslides, or sinkholes.
Which of the following are typically covered by homeowners insurance? ›
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.
What is not included in a standard homeowners policy? ›
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.
Which of the following is not included in a standard homeowner's insurance policy? ›
Coverage for the structure of your home
A standard policy will not pay for damage caused by a flood, earthquake or routine wear and tear.
Which of the following does not have a standard coverage form? ›
Which of the following does not have a standard coverage form? Umbrella Policy.
Which of the following is not a usual component of the homeowners policy? ›
Standard homeowners policies do not cover flooding, earthquakes or poor maintenance.
Which of the following coverages is included in the homeowners policy but it's 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.
What do homeowners policies not provide coverage for quizlet? ›
Homeowners policies don't provide coverage for: flood damage. liability in the case of third party injury. damage to outbuildings.
Which of the following is a cost homeowners insurance does not? ›
Replacement costs for all contents in your home, including high cost electronics, is a cost homeowners insurance does not protect.
