Getting homeowners insurance when you purchase a house is a non-negotiable. But while standard home insurance policies provide a high level of coverage and protection, they don’t cover everything — and in order to protect your home (and your investment), it’s important to understand what potential issues might fall outside your home insurance umbrella.
Here are a few things that you may be surprised to learn that your homeowner’s insurance doesn’t cover:
- Floods. While home insurance typically covers water issues like burst pipes, if your home is flooded due to a hurricane or excessive rain, most standard home insurance policies won’t cover the damage. In order to get coverage, you’ll need to purchase additional flood insurance.
- Earthquakes. Similar to floods, most standard home insurance policies don’t cover earthquakes—so if you want coverage, you’ll need to buy a separate earthquake insurance policy.
- Renovation damage. If you’re doing major renovations on your home—like gutting the interior or replacing the roof—most home insurance policies won’t cover the damage. If you want to protect yourself in the case of damage caused by the contractor, you’ll need to purchase a renovation policy.
- Termites. Pest control and insect infestations can be prevented with proper maintenance, so the cost to remove termites and repair their damage is generally not covered by your homeowners insurance.
So, what does this mean for you? If you’re thinking about buying a home, it’s important to understand the limits of your home insurance policy, and that you purchase additional coverage or maintenance agreements when necessary to protect your home.