7 Surprising Things That Homeowner’s Insurance Doesn’t Cover

You can purchase flood and earthquake insurance separately. Private insurers sell flood insurance in non-flood zones. If you live in an area with a high risk of flooding, you can buy flood insurance through the federal National Flood Insurance Program (NFIP). You can find insurance providers participating in the NFIP here.

Be aware, there’s typically a 30-day waiting period after you enroll before flood insurance policies take effect. “You can’t wait until there’s a hurricane coming up the coast to buy,” says Stacey Giulianti, chief legal officer at Florida Peninsula Insurance Company in Boca Raton, Florida.

3. Valuable personal property

Basic homeowner’s insurance will pay to replace your belongings if they’re stolen or destroyed, but only up to a certain amount. Your insurer’s standard coverage might be insufficient if you have high-value property, such as antiques, artwork, jewelry, sports memorabilia or a wine collection. “That Babe Ruth signed baseball might be worth $5,000, but insurers will treat it like a regular $5 baseball,” says Ashleigh C. Trent, cofounder of Tower Street Insurance in Dallas.

However, you can buy separate personal property endorsements to insure high-value items. Expect to pay roughly 1 to 2 percent of an item’s value per year. For instance, a $10,000 ring would cost roughly $100 to $200 a year to insure.

4. Injuries to people working at your home

If you hire a caretaker, a house cleaner, a gardener or someone else to work at your home, there’s always a risk they could get injured while on your property. If they don’t have workers’ compensation insurance from their employer — or they’re self-employed and lack the proper insurance — you could potentially be on the hook for their medical bills, says Nick Ramirez, an agent with Goosehead Insurance in Huntington Beach, California.

5. Mold and pest damage

Homeowner’s insurance policies usually do not pay for pest removal or cover minor damage from common house pests such as rodents, bees and termites. (Your policy might kick in if an unknown infestation is bad enough to cause “severe damage,” like if your home partially collapses from termites.)

In addition, mold due to poor maintenance is usually not covered by home insurance. However, mold damage caused by a sudden problem, like a burst pipe, should be covered up to your policy’s limit.

6. Banned dog breeds

Many homeowner’s insurance policies do not cover injuries to visitors caused by certain dog breeds that are known to be more dangerous than average. Pit bulls, Rottweilers, Doberman pinschers and German shepherds are a few examples. If your current home insurer won’t allow your dog’s breed, look for coverage elsewhere. Some insurers, such as State Farm, USAA and NJM, make coverage decisions based on a dog’s individual behavior rather than its breed. You could also explore purchasing a separate dog liability insurance policy. Pet liability coverage starts around $120 a year but can go up to $1,000 a year or more depending on the breed and coverage limit.

7. Certain exterior damage

Basic homeowner’s insurance will not usually cover damage to buried utility lines on your land that serve your home, such as water pipes, power lines and sewer lines. In addition, if a sewer backs up and floods your home, basic homeowner’s insurance will not cover the damage.  

For these risks, you could buy an additional endorsement, such as water backup coverage, from your insurance provider at an additional cost.

Know your policy

Knowledge is the best protection for your home. Speak with your insurance agent and ask them to review your policy, especially any exclusions and limitations, so that you can find out if there are any coverage gaps and can plan accordingly.

“If there’s a risk you’re especially worried about, ask your agent to put it in writing that you’re insured,” Ramirez recommends. “Then you have legal proof if something goes wrong and the insurer refuses to cover you.”