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Things That Are Not Likely Covered By Home Insurance Policies

A house will likely make up most of your net worth, so obviously one will want to make sure that it is thoroughly covered by their insurance policy. What many homeowners neglect is the fact that there are many scenarios in which your home or your belongings will not be covered at all. Get yourself informed before laying down your signature so you understand what you are really getting yourself into.

 Not All Natural Disasters Are Covered

Tornadoes and many natural disasters are covered by home insurance policies. Unfortunately, earthquakes and floods are excluded, even though many policyholders are oblivious to the fact.

Even if you live in a flood-prone area, you will have to take out a completely separate policy to cover water damage. The most popular option is the National Flood Insurance Program, which is offered by the federal government. There are also a few private options on the market but it depends on what is available in your local area.

Just like flood insurance, earthquake insurance is widely available but through mostly private insurance companies. If a secondary disaster occurs from a quake, like a fire, then it is possible that damages may be covered by a standard home insurance policy.

 Maintenance or Neglect

As a homeowner, you are responsible for the basic upkeep of your property so that disasters will not occur in the future. Insurance companies will outline in their policies that they will not pay out for damages, like mold or rust, caused by neglect. In areas that have harsh winters, houses that are not winterized are especially scrutinized by insurance companies. Damages caused by faulty repairs or upgrades may also not be covered by policies.

 Sewer backup

Having a major sewer backup can be devastating and costly but most insurance companies will not be willing to help when it causes major damage. A backed up sewer line that is not treated can cause permanent damage to your walls, floors and electrical lines. Fortunately, there are separate insurance plans available from most companies to cover future sewage mishaps.

 Jewelry, Electronics, and Expensive Items

Your collectibles, jewelry, electronics, and other expensive items will be covered by most policies but only to a certain extent. The amount varies greatly but the maximum coverage for each item may be rather low in comparison to the actual cost of your lost goods. For example, if your insurance policy allocates up to $1,000 for jewelry and you had lost $10,000 worth of jewelry, you will have to take the extra $9,000 as a loss.

There are separate policies that you can take out of your precious goods at an extra cost. Typically, many insurance companies will lower your insurance rates if these precious items are kept in a vault rather than out in the open to prevent theft or damages.


Since it is difficult to prove its existence in the first place, most insurance companies are not likely to cover any cash that had been stolen or destroyed within your home. Insurance companies that do consider claims of cash losses will likely have a very low limit, often something like $100. For this reason, it is always a good idea to keep large amounts of cash in banks or safes to prevent theft or damage in the first place.

Food Items

During a disaster, electricity to your refrigerator or deep freezer can be cut off for a significant amount of time, likely causing perishable food items to spoil. Many insurance companies will only cover food items under certain extreme circumstances and will likely have a low claim limit. Keep that in mind the next time your stock your refrigerator with Beluga caviar.

Getting Your House Blown Up During A War

The likelihood of your neighborhood being attacked by a foreign nation is unlikely, but if it does happen, your insurance company will likely have an exclusion to such a rare occurrence. Popularly known as the War Exclusion Clause, insurance companies have the excuse that they would likely be insolvent if mass damages from a war would occur. This clause typically includes terrorist attacks or military coups.

 Injuries In Your Treehouse

Although a treehouse is a part of your property, most insurance companies will not cover your medical bills if you or your kids fall out of it. Since treehouses are very risky and injuries are frequent, insurance companies stay far away from them. Fortunately, it is possible to take out separate insurance policies from some private companies if you are desperate for coverage.

Now that you are informed about what home insurance policies are not likely to cover, you may make an informed decision when shopping for a policy. Home insurance is absolutely a necessity in most cases as it covers the basics in most instances. Ultimately, It is up to you to keep your uncovered assets protected, either through separate insurance programs or through due diligence.

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