The standardhomeowners insurancepolicy, also known as an HO-3, covers your home for multiple perils, but there are some important exclusions. Knowing what's covered and what isn't can save you a lot of money and heartache down the line.
Earthquake and water damage
In most states, earthquakes, sinkholes, and other earth movements are not covered by your standard policy. Earthquake insurance can be purchased as an endorsem*nt (an addendum) for an additional fee in all states except California. Flood insurance, which also includes mudflow, must be purchased as a separate policy and is available only through the government-run National Flood Insurance Program.
Other types of water damage are also excluded. If you have overflows or backups from your sump pump, sewer system or drains, your standard policy will not cover the damage. Coverage may be available, however, by adding a separate endorsem*nt.
Maintenance issues
Taking proper care of your home can keep you from having to pay for costly repairs your homeowners insurance won't cover.
Many things that aren't covered under your standard policy typically result from neglect and a failure to properly maintain the property. Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered.
If something is poorly made or has a hidden defect, this is generally excluded and won't be covered. The same applies to any mechanical breakdown.
Additionally, if your home should suffer a power outage, things like food spoilage are not covered under a standard policy.
Other exclusions
While it's not something anyone wants to contemplate, damage caused by war or nuclear hazard is not covered by your homeowners insurance. Expenses incurred due to identity theft are also not included, but you can purchase this coverage as an endorsem*nt.
If you own a watercraft, your policy will typically provide up to $1,000 of coverage if it's stolen from your home, but will not cover theft from another location. Additionally, most policies will provide liability coverage for crafts with less than 25 horsepower.
Minimal coverage
Minimal coverage is provided for the following:
- Valuable property - firearms, furs, watches, silverware, and gold. A standard policy provides $1,000 for theft of jewelry.
- Replacement cost - Most policies use an actual cash-value basis to determine the settlement amount of any lost or damaged items, which takes into consideration depreciation. A replacement cost endorsem*nt can be added to a policy, which will pay claims based on the cost to replace certain lost items without factoring in depreciation.
- Higher liability and medical payments - Liability for the medical expenses of third parties and legal bills for defense against claims can be astronomical. Increasing your liability policy limits can protect your financial future.
For additional coverage, endorsem*nts can be added to your policy.
This information is provided for your convenience and is not intended as insurance advice. The views, opinions, and advice expressed in this article do not represent those of Homesite Group Incorporated. Please consult your insurance carrier or agent for information regarding your policy or coverages.
FAQs
Many things that aren't covered under your standard policy typically result from neglect and a failure to properly maintain the property. Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered.
Which of the following is not covered by standard homeowners insurance? ›
Damage or destruction due to vandalism, fire and certain natural disasters are all usually covered. So is your liability if someone is injured on your property. Certain catastrophes, like flooding or earthquakes, are generally not covered by basic homeowners policies and require specialized insurance.
What is not included in a standard homeowners policy? ›
Coverage for the structure of your home
A standard policy will not pay for damage caused by a flood, earthquake or routine wear and tear.
Which of the following perils is not covered under a standard homeowners policy? ›
Damage caused by most disasters is covered but there are exceptions. Standard homeowners policies do not cover flooding, earthquakes or poor maintenance. Flood coverage is provided by the federal government's National Flood Insurance Program, although it is purchased from an insurance agent.
What is covered in a standard homeowners insurance policy? ›
Key Takeaways. Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.
What does homeowners insurance not cover quizlet? ›
HO policies do not cover land on which the property is located. A Property of tenants, roomers, or boarders not related to any insured.
Which would normally not be included in a standard homeowners insurance policy quizlet? ›
b. The damage from normal wear and tear is one of the excluded perils from a typical homeowners' insurance policy.
Which one is not protected by most homeowners insurance? ›
Most homeowner policies do not cover damages caused by the following situations:
- Flooding.
- Earthquakes.
- Business equipment.
- Jewelry or artwork.
- Power outages.
- Nuclear hazard.
- War.
- Dog bites.
Typical homeowners insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms and hail. But, it's important to know that not all natural disasters are covered by homeowners insurance. For example, damage caused by earthquakes and floods are not typically covered by homeowners insurance.
Which is not true about homeowners insurance? ›
Rumor: My homeowner's insurance includes flood insurance.
This is not true. Homeowner insurance policies do not normally cover flood damage. Flood insurance is typically a separate policy.
Coverage for “open perils”— and similar terms such as "all perils," "all risk," or "special perils," coverage — means that damage or loss from all potential perils may be covered unless specifically excluded in the insurance policy. Flooding is an example of a peril generally excluded from coverage.
Which of the following coverages is included in the homeowners policy but is not included in an unendorsed dwelling policy? ›
Which of the following coverages is included in the homeowners policy but is not included in an unendorsed dwelling policy? Liability & theft.
Which two types of natural disasters are not normally covered in a homeowners policy? ›
Disasters that are not covered
- Floods. Flood damage is excluded under standard homeowners and renters insurance policies. ...
- Earthquakes. Earthquake coverage is available from most insurance companies as a separate policy or an endorsem*nt to your homeowners or renters policy. ...
- Maintenance damage. ...
- Sewer Backup.
- Homeowners insurance coverage pays to repair or replace damaged property, including your belongings and the structure of your house.
- Home insurance generally covers damage due to fire, wind or snow, but it won't cover floods or earthquakes.
HO-3 (special form)
The most common type of homeowners insurance is the HO-3 policy. HO-3 policies offer more expansive coverage than HO-2s, meaning that your home's structure is safeguarded against all perils except for those specifically excluded (for example, earthquakes and floods) in your policy.
What are the six categories typically covered by homeowners insurance? ›
A standard homeowners insurance policy covers the following:
- Dwelling Coverage.
- Other Structures Coverage.
- Personal Property Coverage.
- Loss of Use / Additional Living Expenses Coverage.
- Liability Coverage.
- Medical Payments to Others Coverage.
Typical homeowners insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms and hail. But, it's important to know that not all natural disasters are covered by homeowners insurance. For example, damage caused by earthquakes and floods are not typically covered by homeowners insurance.
Which coverage is not included in a standard businessowners policy? ›
BOPs do NOT cover professional liability, auto insurance, worker's compensation or health and disability insurance.
