Home Owners Beware: 5 Problems Your Home Insurance Policy Might Not Cover

Buying house insurance is just part and parcel of the home buying process. The majority of home owners tend to forget about their policy after they’ve bought it, unless a problem arises that prompts them to put in a claim. A common assumption about home insurance is that everything under the sun is covered, but this mind-set can run you into a brick wall when you find out the hard way that a specific problem you’ve experienced with your home isn’t covered by your insurance provider.

Do yourself a favor and find out exactly what your policy covers you for, and what it doesn’t. Here are 5 things that are typically not covered by the average insurance policy.

1. Floods

If you head to the basement only to find that it’s been flooded after a massive rainstorm, you might be disappointed when your insurance company tells you that the damage is not covered under your policy. Unfortunately, typical policies don’t cover damage from floods. If you want coverage, you’re going to have to purchase additional flood insurance from the National Flood Insurance Program.

Even though lenders want to see proof of flood insurance before they approve borrowers with mortgages, homeowners who live in low- to moderate-risk flood zones are not obligated to buy into it. Even if you are in a low-risk area, you’re better off getting the coverage just in case – for as little as $129 a year, you can have some peace of mind knowing that your claim for flood damage won’t be thrown out the window.

2. Earthquakes

Don’t expect your insurance provider to cover you for broken heirlooms or cracked tiles after the earth gives your house a good shake. In fact, standard proper insurance policies don’t cover damage caused by earthquakes.

Much like floods, additional coverage will be required to ensure that you can make a claim for any damage, especially if you live in parts of the country where the ground is particularly shaky. Many insurance providers will offer a rider to policies, or else you’ll have to by a separate policy specifically for this type of coverage.

3. Unwanted Guests (aka termites, bugs and rodents)

If your furniture is being munched on by termites, or your bedrooms are being taken over by bed bugs, don’t expect your insurance company to flip the bill for damages. If your attic is infested with rodents, or your electric wiring has been chewed through, you pretty much have to fend for yourself.

Standard policies don’t stipulate anything about damage from pests. Your best bet is to take a preventative approach by keeping an eye out for any signs of pest presence. If you suspect an issue, call an exterminator right away before the problem gets out of control.

4. Sewage Backup

It’s gross, but even worse, it’s super expensive to rectify. Sewage backup can cause massive damage to a house, and cost an exorbitant amount of money to fix. Standard insurance policies won’t cover this damage – it’s up to you to add it to your existing policy in order to be covered should your home be the victim of sewage seepage.

5. Mold

Inhaling mold day in and day out can cause severe medical issues for you and your family members. The problem can get so bad that your home may even be deemed uninhabitable. You’d be well advised to go over your policy with a fine tooth comb to see if the policy covers mold removal and repair.

Some insurance providers deal with a mold situation differently. While some might offer limited coverage, others won’t offer any coverage at all. If your policy doesn’t include mold coverage, get yourself a rider to add to it.

The Bottom Line

You’ll probably find out that there are a ton of things you just assumed you were covered for with your insurance policy, but actually weren’t. You’re probably better off adding riders or additional policies just to give you the peace of mind knowing that you won’t be on your own if you find yourself in the middle of a disaster.