A squirrel fell down a chimney in Atlanta. It didn’t just sit there. It scratched the floors. It chewed the baseboards. It wrecked a couch. The damage topped out at $15,000. The homeowners filed a claim. The insurance company said no.
It’s a harsh lesson. You think you’re protected. You’re not.
Standard policies are not all-encompassing safety nets. They cover specific perils. They ignore others. Janet Ruiz, director for strategic communication at the Insurance Information Institute, explains it plainly. “Fire is the basic coverage provided by an insurance policy.” Other common perils include water damage, theft, wind, and liability. But that’s it.
If you think your policy covers everything, you’re risking financial ruin. Here are eight scenarios where your coverage likely stops short.
Зміст
Floods Are Not Covered
Standard homeowners policies exclude flood damage. This includes rising water from rivers, lakes, or heavy rain that breaches the foundation. You need separate flood insurance. You can get it through the U.S. government’s National Flood Insurance Program or a private insurer. Don’t skip this. If you live in a flood zone, it’s not optional. It’s essential.
Earthquakes Require Separate Policies
A 5.8 magnitude earthquake hit Virginia in 2011. It caused $300 million in losses. Six hundred homes were damaged. Many owners discovered their policies didn’t cover the repairs. Earthquakes damage foundations. They collapse walls. You need a separate earthquake policy for this. Standard policies might cover fires caused by the quake, but not the structural damage itself.
Sewer Backups Are a Gap
Sewer backups are messy. They are also excluded from standard homeowners policies and flood coverage. You need to purchase additional sewer backup coverage. It’s an add-on. It’s relatively cheap compared to the cleanup costs. Don’t wait until the sewage backs up into your basement to buy it.
Maintenance Damage Is Your Problem
Homeowners policies do not cover damage caused by neglect. If you don’t maintain your home, you’re on your own. This includes damage from termites. It includes mold. It includes any deterioration that could have been prevented with basic upkeep. You are responsible for keeping your house in good repair.
Trampolines and Pools Increase Risk
Trampolines are fun. Pools are refreshing. But insurers see them as liabilities. The National Association of Insurance Commissioners notes that some companies may not insure your property if you have these features. They may exclude liability for injuries related to them. They might even cancel your policy if you don’t inform them. Follow safety guidelines. Tell your insurer.
Dog Attacks Have Limits
If your pet bites a visitor, you’re typically covered for legal liability up to your policy’s limit. That’s usually $100,000. The average dog bite claim is around $39,000. So far, so good. The problem arises if you own a breed with a reputation for aggression. Some insurance companies won’t cover you at all. Check your policy’s breed restrictions.
Jewelry Has Low Caps
Homeowners’ policies set a limit on jewelry coverage. It’s usually around $1,500. If you have costly rings or necklaces, that’s not enough. You need a floater policy. This covers loss, theft, and even dropping your ring down a drain. You’ll need to get the items appraised professionally first. Don’t leave your valuables exposed.
Items in Other Basements Are Not Covered
You store some possessions in a friend’s basement. A disaster strikes. Your stuff is gone. You can’t claim it on their policy. They’re not the homeowner. You’re not the homeowner. You’d have to try to collect money from your friend. It’s a messy situation. Insure your own belongings. Keep them in your own home.
Terrorism Is Usually Covered
Policies don’t specifically mention acts of terrorism. But if your policy covers damage from explosions, fire, and smoke, you’re likely covered. This includes bombing by extremist groups. The coverage is there. You just have to look at the fine print.
Home insurance is complex. It’s easy to miss the gaps. Don’t assume you’re protected. Read your policy. Ask questions. Fill the holes before you need them.
