What Does Homeowners Insurance NOT Cover In 2024? (Need To Know)

You are the new owner of a house and have to look for homeowners insurance, or you have run into a problem and are not sure if it is covered under your insurance. There are some insurance companies out there that will cover different things. Coverage depends on the insurance company and the policy that you have.

What is not protected by most homeowners insurance?

The most common form of homeowners insurance does not cover jewelry, identity theft protection, artwork, or other personal belongings. It also does not cover earthquake and flood damage. The insurance does have options to include coverage for the ones that were not originally covered in the policy you got.

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What areas are not protected by most homeowners insurance?

Earth movement
Water damage
Intentional or preventable loss
Ordinance or law
Mold damage
Luxury items
Aggressive dog breeds, pools, and trampolines
Defamation of character
Business-related claims

Some of these in the list do have exceptions depending on the policy. Most are not covered at all and have separate insurance’s that need to be on them to be protected.

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What type of flood damage is covered?

Any natural flooding that happens will not be covered unless you have separate insurance for the flooding. Most burst pipes are covered unless it is just the usual wear and tear. It is like if your pipes suddenly burst due to being put in the wrong way, and it ruins parts of your house. That would most likely be covered, but if they were old pipes that wore down over time, they would more than likely not be covered. It would depend on your policy and the insurance company.

What happens when you live in an area that is prone to flooding?

If you happen to live in an area known to flood, you may be required to have flood insurance. To see if the place you are at or going to be at is in an area that is prone to flooding, check here. All you have to do is enter the address or a place that is close to you. If you are not comfortable with putting your address in it. It will pull up a flood map, so you will know if you are in an area that floods or not.

What type of water damage is covered?

You may worry about whether the water damage is covered or if you have to come up with the amount to get it fixed. If it is sudden or accidental, it would be covered if your policy allows it. This could mean busted pipes from the weather getting too cold overnight and freezing fast. If a storm produces enough damage to cause water damage, this may be covered depending on the policy that you have. Accidental sewer backup or overflow is covered depending on the circumstances.

On the other hand, if you neglect your pipes, do not repair them, and just let the damage worsen, it will not be covered. Mold is typically not covered by insurance most of the time. As stated above with the pipes, if it is an old pipe that has worn down over time, it will not be covered. If a storm goes through and makes a tree fall on your house, then the roof and water damage will be covered, but the mold that could surface from it will not be.

Does home insurance cover roof leaks?

Roof leaks are usually covered by homeowners insurance if they are caused by outside forces and not wear and tear over time. You are responsible for the upkeep of your roof and the rest of the house. If it is found that you have neglected the house, you will be the one coming out of pocket to fix the preventable damage.

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Coverage for cracked walls

It depends on the policy that you have and what caused the cracked walls or foundation on whether they cover it or not. If it was due to a flood, it would not be covered unless you have flood insurance. If you live in a place that gets earthquakes and your foundation cracks, you will need specific insurance for it to be covered.

Sagging floor coverage

This also depends on the policy and what caused it. This means you need to be familiar with what is covered in your insurance policy. Because each insurance company makes its policies, they will not be the same as another.

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Coverage for appliances in your home

Depending on the policy and what happened to the appliances. If they were damaged by fire, lightning, or smoke. This will not cover every appliance in the house unless otherwise stated in your policy. If it is a bigger appliance like a hot water heater, air conditioner, or a gas fireplace got built with the house, they would more than likely cover those within the policy.

You can purchase additional coverage to have your other appliances covered in case they get messed up due to anything. Appliances tend to quit or tear up at the most inopportune time. Of course, you would want the most expensive ones covered for when they do mess up.

If you do not take care of the appliances, that may make you responsible for the cost of the repairs or replacement.

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Are you required to have homeowners insurance?

In most cases, states do not require you to have homeowners’ insurance unless your house is under a mortgage or a loan from a bank. This is to protect the mortgage or the bank from a potential loss as they are putting their money to help you with purchasing the house.

How to make a claim for homeowners insurance?

File a police report (only if theft was involved).
Call the insurance.
Make any urgent repairs.
Document the claim.

Make sure to keep up with all of your receipts, also the police report if you filed one, and once the adjuster comes out, you can file the claim. Keep in mind that your rates can go up after making a claim. So if the damage is worth more than the deductible, go ahead and make a claim, but if it is less than that, then decide on whether to make the claim or take care of it yourself.

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List of homeowners insurance

State Farm
Allstate Corp
Liberty Mutual
MetLife Inc.
Nationwide Mutual Group
Alfa Mutual Group

This is not a complete list of all the homeowners insurance out there. These are some of the more well-known ones out there. Be sure to research the ones you like so you can find the best one for your house.

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Check the BBB ratings of the homeowners insurance

The reason you want to check the BBB ratings is because you may run into a problem with the one you choose. If you look at the ratings, you can make a more informed decision on whether to go with them or not. If you notice that most are not positive, it may be best to look into another.

You do not want to come upon a problem when you have to have construction workers working on your house, and the insurance company will not pay out when they say they will. Especially when you know your policy covers the work being done. You do not want to be left paying out of pocket for what your insurance is supposed to pay for.

This helps keep you protected and helps you make the best financial decisions for your home and family.