Surprising things that are not covered by Insurance

When your home is hit by lightning, hail, or some other calamity, you’ll be glad you have a homeowners insurance policy in place to help foot the cost of repairs.

Yet while home insurance typically covers a variety of common hazards that can happen to your home, it does not cover everything that may come your way.

The exact instances that are and aren’t covered by a typical home insurance plan depend entirely on the details of your policy—and, contrary to what you may think, each policy is different.

Insurance policies are different for every property. 

Generally speaking, most home insurance policies cover natural disasters, certain crimes, and accidents. Most will cover wind and hail, dog bites, theft and vandalism, snowstorms, and burst pipes. Beyond that general framework, however, there’s no blanket guarantee you’ll be covered.

Don’t bank on your insurance company footing the bill for the following unfortunate situations:

1. Flood

If the “flood” you speak of is a puddle of water from a burst pipe, yes, insurance should cover it.

But if the flood is due to excessive rain, a hurricane, or an overflowing river, most standard home insurance won’t cover it. (The National Flood Insurance Program defines flooding as “an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties.”)

The greater Houston area is prone to floods, so you’ll want to purchase this additional flood insurance. This is especially true since flooding tends to cause expensive damage—even 1 inch of floodwater can result in 25,000 in repairs, on average. So don’t buy a home in a flood-prone zone without it!

2. Water Leaks

It depends. Damage caused by slow leaks—technically “seepage and leakage”—can be denied coverage. Water damage has to be “sudden and accidental,” according to Allstate.

3. Mold

This depends on what caused the mold to appear. A policy might cover mold if it’s the result of a “covered peril,” such as water damage from a burst water heater or firefighters dousing flames on your home.

However, mold won’t be covered if it was caused by perils outside your policy, such as flooding, or preventable ongoing problems, like a slow water leak or high humidity.

4. Sewer and drain backups

In Houston, the sewers and drains can back up into peoples homes. Some policies will not cover this.

5. Wear and Tear

Sorry, but no. The policy is there for emergencies, not for preventative maintenance.

6. Damage from renovations?

Before starting any major renovation, contact your insurance agent. Most policies will not cover major renovations.