Blog>What Your Homeowner's Policy Doesn't Cover

What Your Homeowner's Policy Doesn't Cover

By Bill Smith · 5 min read

I sit down with homeowners every week who are surprised to learn what their policy doesn't cover. Standard homeowner's insurance is good, but it has gaps that can cost you thousands if you're not aware of them. Here are the most common exclusions I see.

Flood Damage

This is the big one. Standard homeowner's policies do not cover flooding from rising water, storm surge, or overflowing rivers. Even in Anytown, where we're not in a high-risk flood zone, I've seen basement flooding from heavy rains that wasn't covered. I recommend every homeowner at least get a flood quote. It's often more affordable than you'd think.

Earthquake Damage

If the ground shakes and your foundation cracks, your homeowner's policy won't cover it. Earthquake endorsements are available through specialty carriers and are worth considering, especially for older homes with stone foundations.

Sewer Backup

When your drain or sewer line backs up and sends water into your basement, your standard policy usually won't cover the damage. A sewer backup endorsement costs just a few dollars per month and covers cleanup, repairs, and damaged belongings.

Home Business Equipment

If you work from home, your computers, monitors, and office equipment have very limited coverage under a standard homeowner's policy, usually around $2,500. If you have a home office with $10,000 worth of equipment, you need a home business endorsement or a separate inland marine policy.

What to Do About It

The good news is that most of these gaps are easy and affordable to fill. I review every client's policy for these exclusions and recommend the right endorsements. A 15-minute conversation can close gaps you didn't know you had. Call me at (800) 555-0302 and I'm happy to take a look at your current policy.