|
Do You Know What's Not Covered By Your Homeowner's Insurance Policy?The more you know about what is not covered by your homeowner's policy, the better prepared you will be. Most homeowner's insurance policies cover your damage resulting from all major perils. Exceptions many people may be aware include flood, earthquake, war, and nuclear accident. But did you know there may be other exclusions? This article discusses what's covered and what's not covered in a standard homeowner's policy. What Is CoveredHomeowner's insurance protects you from loss resulting from damage caused by certain perils, or disasters.
A total of 17 perils are defined and used by the insurance industry when writing policies. The 17 perils are broken
into two groups, depending upon the policy you hold. Group 1 - 11 Perils | Group 2 - 6 Perils | fire or lightning | objects falling from the sky | windstorm or hail | weight of ice, snow or sleet | explosions | accidental discharge or overflow of water from your plumbing system | riot or civil commotion | freezing of plumbing | aircraft | sudden and accidental damage to your water heating system | vehicles | damage from an electrical surge | sudden or accidental damage from smoke | | vandalism (sometimes called malicious mischief) | | theft | | volcanic eruption | | damage caused by glass or safety-glazing material that is part of a building | |
At a minimum, most policies cover damage resulting from this list of perils.
For more information on homeowner's insurance, seeThe Perils of Homeownership in our Knowledge Center Library. What Is Not CoveredWhile you certainly want to know the things that will be covered by your insurance policy, you also will want to fully understand the specifics that are not covered by your policy. Your policy will include a list of the things that are not covered, also known as exclusions. The lists provided in this article are not intended to fully represent every possible insurance company and coverage. Take time to review your policy with your insurance agent and, if necessary, adjust your insurance to maximize you coverage and minimize your exposure to loss. In the standard homeowner's policy, covering all 17 perils (typically referred to as an HO-3 type policy), these are the standard exclusions you will find: - Floods (this insurance must be purchased separately). For more information about flood insurance, see the
U.S. Federal Emergency Management Agency (FEMA) website www.floodsmart.gov.
- Earthquakes (this insurance must be purchased separately).
- Damage from war.
- Damage from a nuclear accident.
- The land under your house.
- Pollution.
- Intentional damage (caused by the homeowner).
- Structures used for a business (this insurance must be purchased separately).
- Wear and tear on a home, including deterioration, insect and rodent infestation, settling, cracking, bulging, or expansion of pavement, walls or foundations, or damage from domestic animals.
- Defective construction.
- Cars, trucks, vans, motorcycles, aircraft, and boats with anything more than a small motor parked on your property (these items should be covered under separate policies for automobile, boat, etc.).
- Loss due to power failure.
- Theft from a house under construction.
- Freezing of pipes in an unoccupied, vacant or under-construction house.
- Vandalism and malicious mischief, if the house has been vacant for more than 30 days.
- Freezing, thawing, pressure or weight of water or ice to a fence, pavement, patio, swimming pool or dock.
- Property belonging to tenants.
- Pets and other animals, birds, and fish residing on the property.
- Losses resulting from the failure to protect property after a loss.
Even though your policy may not cover you for the exclusions listed, you might be covered for losses that result from the excluded event. Here's an example: The design of your fireplace is defective and flames blow out of your fireplace into the room. You are not covered for the defective fireplace, but you are covered for the fire that damages your carpet or furniture. You can adjust your insurance coverage provided by your policy at any time. If there are exclusions you are not
comfortable with, you can inquire about purchasing additional coverage. An annual checkup for your homeowner's policy will
keep your coverage in the best shape to cover your insurance needs. For more information on
homeowner's insurance, see the State of
Arizona's Frequently Asked Questions About Homeowner's Insurance. This article is part of a series about homeowner's insurance.
For more information on other facets of insuring your home, search our
Knowledge Center Library for
related articles. Take control of your finances with our debt help tools. Use our calculators and budget planner to help you manage your money.
Related Insurance Articles:- Important Tips for Choosing Homeowner's Insurance - Learn the basics of homeowner's insurance to determine what specific coverages you need and how to protect your most important investment.
- Liability Insurance Provides Additional Layer of Coverage - Liability Insurance coverage can be included in your homeowner's policy and will provide an additional layer of coverage for personal liability protection. The cost of liability coverage is an important consideration, which you can easily determine based upon the factors in this outline.
- Save Money on your Auto Insurance - Familiarize yourself with the discounts available for your auto coverage and you can instantly begin saving money on your premium. But don't stop there, continue to comparison shop at regular intervals to ensure that you're getting the best possible coverage at the lowest cost.
|