5 Things Your Homeowners Insurance Won’t Cover

Homeowners insurance is something that's required to be in place for just about every homeowner with a mortgage and something that even those who own their homes free and clear shouldn't be without. Knowing exactly what's covered by your homeowners insurance policy, however, is not required, and many may not have completed the due diligence needed to learn just what's protected and what's not. You may falsely believe that your home policy protects you from any type of peril or damage your home may suffer.

While your coverage may, indeed, protect you from a long list of hazards that could possibly befall your home, there are plenty of potential hazards a standard homeowners insurance policy doesn't cover and you should be aware of these. The best advice is to thoroughly read your policy when you receive it and to consult with your insurance agent if you have any questions or confusion regarding the details of your coverage.

What is Usually NOT Covered

The following is a list of common, unexpected and expensive damage scenarios likely not covered by your standard homeowners policy. Bear in mind that, in the insurance business, just about anything CAN be covered if you're willing to pay the price required for the coverage. This, however, takes implementation of a special, custom designed policy or series of policies. Bear in mind the following when considering your coverage options.

1. FLOODING - some homeowners mistakenly believe their homes are covered for flood-related damages when, in fact, nearly all standard homeowners policies exclude floods from coverage protection. Homeowners desiring flood coverage must add an additional policy to their insurance portfolio. In this case, coverage can be obtained through FEMA's National Flood Insurance Program.

2. EARTHQUAKES - these disasters are also typically excluded from standard homeowners coverage. A separate policy must be purchased to cover for this peril.

3. SEWER BACKUPS - damage caused as a result of a sewer backup is excluded from most homeowners policies.

4. CASH - large amounts of cash stolen or destroyed in your home usually won't be covered. Other high-priced valuables such as collectibles, artwork or jewelry are typically covered only within a fairly low limit.

5. BURST WATER PIPES - while water damage caused by burst pipes may be covered by your policy, the cost to repair or replace the pipes probably isn't. If the broken pipes are the result of negligence, the claim may be denied altogether.