Five Types of Claims Most Homeowners Insurance Doesn't Cover
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Purchasing a homeowners insurance policy is part of being a responsible property owner, but while your policy covers many parts of your home, it doesn't cover the whole thing. You may be surprised by these five types of claims your insurance likely doesn't cover.
Flood Damage: Homeowners insurance policies rarely cover flood damage, though many people think they do. Homeowners who live in areas typically affected by flooding should purchase a separate flood insurance policy. Available through the National Flood Insurance Program, which is run by the federal government, these policies often take around a month to go into effect, so they should not be purchased right before a flood warning.
Mold: Most basic homeowners insurance policies have limited mold coverage or don't include it at all. Sometimes you can purchase an endorsement for additional mold coverage. The limited coverage, though, means you're unlikely going to get reimbursed for the full amount of damage.
For policies covering mold damage, getting a payout is usually dependent on the source of the moisture. For instance, if your mold is the result of a plumbing problem, it could be covered. But if it's due to flooding or lack of maintenance in the home, it probably isn't included.
Dog Attacks: Many insurance companies will not cover certain breeds of dogs if they are known to be aggressive. If your dog has bitten someone before, it likely will not be covered no matter what the breed; if it is, it will be at a higher premium.
Earthquakes: Insurance companies don't offer earthquake coverage as part of their homeowners policies, but they do provide separate earthquake policies or endorsements. Earthquake insurance is more expensive in earthquake-prone areas and fairly inexpensive in less-risky areas. Many policies come with a higher deductible than that of a regular homeowners policy.
Termite Infestation: Homeowners insurance tends to cover unavoidable and unexpected damages but these do not include termites. While many may consider a termite infestation an unexpected occurrence, the property owner can prevent an infestation through maintenance and regular inspections. Homeowners can, however, buy a termite bond from a termite control company to ensure regular inspections for termites. If there is a termite infestation, the termite control company then pays for the damages.