What Homeowners Need To Know About Standard Policy Exclusions

Homeowners insurance provides a critical safety net, protecting against losses caused by fire, theft, storms, and other common risks. However, many policyholders are surprised to discover that not everything is covered. Every homeowners insurance policy comes with standard exclusions—specific situations or damages that insurers won’t pay for.
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Understanding these exclusions helps homeowners avoid costly surprises and determine if additional coverage is necessary.

Common Standard Exclusions in Home Insurance
1. Flood Damage

• Standard homeowners insurance does not cover flooding caused by heavy rain, storm surges, or overflowing rivers.
• Separate flood insurance through the National Flood Insurance Program (NFIP) or private insurers is required.

2. Earthquake and Ground Movement

• Damage from earthquakes, landslides, or sinkholes is typically excluded.
• Special earthquake insurance or endorsements are needed in high-risk regions.

3. Normal Wear and Tear

• Insurance covers sudden, accidental events—not gradual deterioration.
• Examples: aging roofs, plumbing leaks from lack of maintenance, or old appliances breaking down.

4. Mold, Fungus, or Infestation

• Damage from mold, termites, or rodents is often excluded unless caused by a covered peril (e.g., water damage from a burst pipe).

5. Sewer and Drain Backup

• Backed-up sewers and drains are not typically included.
• A sewer backup rider can provide additional protection.

6. Power Failure

• Losses from power outages (like spoiled food) may not be covered unless the outage is directly caused by a covered peril.

7. War, Nuclear Hazards, or Government Action

• Catastrophic risks such as war or nuclear events are excluded.
• Government seizures or demolitions are also not covered.

8. High-Value Items Beyond Limits

• Jewelry, art, collectibles, and electronics may have limited coverage (e.g., $1,500 for jewelry theft).
• Separate riders or scheduled personal property coverage may be necessary.

Why Insurers Have Exclusions

• Manageable Risk: Insurers exclude risks that are too widespread or catastrophic to insure under standard policies.
  
  
• Encourage Maintenance: Exclusions discourage neglect and encourage homeowners to perform routine upkeep.
  
  
• Separate Coverage Options: Exclusions allow insurers to offer specialized add-ons or endorsements for specific risks.

How Homeowners Can Protect Themselves

1. Read Your Policy Carefully
   Don’t rely on assumptions—know exactly what is and isn’t covered.
   
   
2. Consider Endorsements or Riders
   Add coverage for risks like sewer backup, mold, or high-value personal property.
   
   
3. Purchase Separate Policies if Needed
   Flood or earthquake insurance may be essential depending on your location.
   
   
4. Maintain Your Home
   Regular upkeep prevents damage that would otherwise fall outside of coverage.
   
   
5. Conduct a Home Inventory
   Know the value of your belongings to identify gaps in coverage.

Conclusion
Homeowners insurance offers vital protection, but it’s not all-encompassing. Standard policy exclusions—such as floods, earthquakes, wear and tear, and high-value items—mean homeowners need to be proactive. By understanding these limitations and supplementing with riders or additional policies, you can ensure your home and belongings are fully protected.

The key takeaway: don’t wait until disaster strikes to discover what your policy excludes. Review your coverage now, and make adjustments so your safety net is as strong as it should be.

At Harvest Insurance Group, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get insurance that fits your needs. Get in touch with our company at (940) 441-7157 to learn more about our offerings. Today, by CLICKING HERE, you may get a free estimate.

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.​