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Hazards Not Covered by Home Insurance

Four Hazards Not Covered by Home Insurance

(From Peoples Mortgage, Del Van Essen)

Your house is your biggest investment, and home insurance protects that investment from financial catastrophe as the consequence of a disaster.  Basic home insurance covers fire and smoke damage; liability coverage in the event that someone is injured inside your house; it covers damage from lightning strikes, theft, ice and snow damage, and frozen pipes.  

But most standard home insurance policies contain exclusions that homeowners should be aware of.  Here are four of the most common exclusions:

  1. Floods:  Standard home insurance policies don't cover flood damage, and if you live in an especailly high-risk flood zone, your mortgage lender will probably require you to carry a flood insurance policy.
  2. Mold:  Breakouts of mold in your walls are super gross, and they're also a health risk for people with allergies or compromised immune systems.  Cleanup is difficult and expensive, and most standard home insurance policies exclude mold damage outright.  It's really important to eliminate sources of dampness as quickly as possible, before mold shows up.
  3. Sewer backup:  A sewage line backing up into your house is one of the worst things that can happen.  Not only does it directly damage walls, furniture and electrical wiring in the affected areas, but the smell can render the rest of your home uninhabitable.  Aging American intrastructure means that sewer line cracks, breakages and backups are fairly common; consider talking to an insurance professional about supplemental insurance to cover such damage.
  4. Termite damage:  Home insurance almost always excludes termite damage, and if you live in a high-risk area of the country, you should learn about termite bonds.  These are not exactly insurance; a termite bond is a contract between a homeowner and a pest control company that provides regular inspections and as-needed treatment for termites.  High-end agreements guarantee that the company will pay for treatment and structural damage should it occur.

If you have any questions about exclusions in your home insurance policy, or you want to supplement your coverage, consult an insurance professionals.