One Drawback of Home Insurance Policies

The other night I was awoken by a pretty severe thunderstorm. Bright lightning and heavy rains lasted throughout the night. By daybreak, it had rained nearly three inches in the span of six hours.

Naturally, I thought, “time for an article.”

The heavy rain made me think about what would happen in the event of a flood. The reason why is that most home insurance policies specifically exclude damage from flooding. That is, if water seeps into a basement from heavy rains and damages the area, homeowner’s insurance would not apply. A specific flood insurance policy is needed.

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However, flood is not the only peril home insurance policies will generally exclude. In many cases, most home policies will exclude the following perils.

  • Flood
  • Earthquake
  • Neglect
  • Termites
  • War
  • Intentional loss

Additionally, most home policies (including renters or condo insurance) will exclude or limit coverage on personal property for the following.

  • Business Property
  • Cash
  • Antiques
  • Jewelry
  • Coins
  • Collections
  • Art
  • Firearms
  • Intentional loss
  • Automobiles (covered under auto insurance)

Lastly, many home policies will exclude or limit the amount of liability coverage on the policy from the following.

  • Business Use
  • Pools
  • Trampolines
  • Certain Pets (such as dogs deemed “vicious”)
  • Intentional acts
  • Illegal Acts/Activities

Many companies do allow policyowners to endorse their current policies. This means providing coverage separate from the home policy, for a specific item such as a wedding ring, firearm, painting, coin collection, etc.

If you’re in doubt, feel free to let us know or speak to your insurance agent.

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