Top 10 Home Insurance Exclusions You Need to Know (And How to Protect Yourself)
Feb 6
3 min read
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Home insurance is essential for protecting your property, but many homeowners don’t realize that standard policies have exclusions. Understanding what’s not covered can help you avoid costly surprises. Here are some of the most common home insurance exclusions and how you can protect yourself.
1. Flood Damage
What’s Excluded: Most standard policies do not cover flood damage from heavy rain, hurricanes, or overflowing bodies of water.
How to Protect Yourself: Purchase a separate flood insurance policy through the National Flood Insurance Program (NFIP) or private insurers.
2. Sewer Backups
What’s Excluded: Damage from sewage or drain backups is typically not covered in standard policies.
How to Protect Yourself: Add a sewer backup endorsement to your policy to cover damage from plumbing failures or heavy rainfall.
3. Mold Damage
What’s Excluded: Mold caused by long-term leaks or high humidity is usually not covered unless it results from a covered event, like a burst pipe.
How to Protect Yourself: Fix leaks immediately, use dehumidifiers, and consider adding mold coverage to your policy.
4. Termite and Pest Damage
What’s Excluded: Home insurance generally does not cover damage caused by termites, rodents, or other pests, as these are considered preventable maintenance issues.
How to Protect Yourself: Schedule regular pest inspections and maintenance to prevent infestations.
5. Wear and Tear
What’s Excluded: Normal aging, deterioration, and lack of maintenance are not covered under homeowners insurance.
How to Protect Yourself: Perform regular home maintenance to prevent damage before it happens.
6. Earthquake Damage
What’s Excluded: Damage from earthquakes, landslides, and sinkholes isn’t covered in most standard policies.
How to Protect Yourself: Buy a separate earthquake insurance policy if you live in an earthquake-prone area.
7. High-Value Belongings
What’s Excluded: Jewelry, fine art, and collectibles may only be covered up to a certain limit—often much lower than their actual value.
How to Protect Yourself: Get an endorsement or rider for high-value items to ensure full coverage.
8. Home Business Losses
What’s Excluded: If you run a business from home, your homeowners insurance won’t cover business equipment or liability claims.
How to Protect Yourself: Consider a home business insurance policy for proper protection.
9. Pool and Trampoline Liability
What’s Excluded: Injuries from pools or trampolines may be excluded or have limited coverage due to high risk.
How to Protect Yourself: Check with your insurer, add an umbrella liability policy, and install proper safety measures.
10. Negligence and Intentional Damage
What’s Excluded: If damage results from intentional harm or neglect, insurance won’t cover repairs.
How to Protect Yourself: Keep your home in good condition and act responsibly to maintain coverage.
Why Understanding Insurance Exclusions Matters
Not knowing what’s excluded in your policy could leave you paying out-of-pocket for major repairs. Reviewing your policy, adding necessary endorsements, and talking to your insurance agent can ensure you have the right protection.
The Importance of Consulting Your Insurance Agent
Understanding what your home insurance policy excludes can be tricky, which is why consulting your insurance agent is crucial. Your agent can review your policy with you, point out any exclusions, and suggest additional coverage options to fill in the gaps. This proactive step ensures you’re fully protected and helps avoid unexpected expenses down the road. Before any disaster strikes, take the time to have an in-depth conversation with your agent about your coverage needs.
Need Help After a Disaster? Call Clean Way Restoration!
If your home suffers from fire, water, mold, or storm damage, Clean Way Restoration is here to help. We work directly with your insurance company to make the restoration process seamless. Call us today for a free consultation!
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