The views, opinions, and advice expressed in this article do not represent those of Homesite Group Incorporated. This information is provided for your convenience and is not intended as insurance advice. Increasing your liability policy limits can protect your financial future.įor additional coverage, endorsements can be added to your policy. Higher liability and medical payments - Liability for the medical expenses of third parties and legal bills for defense against claims can be astronomical.A replacement cost endorsement can be added to a policy, which will pay claims based on the cost to replace certain lost items without factoring in depreciation. 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 standard policy provides $1,000 for theft of jewelry. Valuable property - firearms, furs, watches, silverware, and gold.Minimal coverage is provided for the following: Additionally, most policies will provide liability coverage for crafts with less than 25 horsepower. 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. Expenses incurred due to identity theft are also not included, but you can purchase this coverage as an endorsement. While it's not something anyone wants to contemplate, damage caused by war or nuclear hazard is not covered by your homeowners insurance. The same applies to any mechanical breakdown.Īdditionally, if your home should suffer a power outage, things like food spoilage are not covered under a standard policy. If something is poorly made or has a hidden defect, this is generally excluded and won't be covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered. Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. Many things that aren't covered under your standard policy typically result from neglect and a failure to properly maintain the property. Taking proper care of your home can keep you from having to pay for costly repairs your homeowners insurance won't cover. Coverage may be available, however, by adding a separate endorsement. If you have overflows or backups from your sump pump, sewer system or drains, your standard policy will not cover the damage.
Other types of water damage are also excluded. 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. Earthquake insurance can be purchased as an endorsement (an addendum) for an additional fee in all states except California. In most states, earthquakes, sinkholes, and other earth movements are not covered by your standard policy. Knowing what's covered and what isn't can save you a lot of money and heartache down the line. The standard homeowners insurance policy, also known as an HO-3, covers your home for multiple perils, but there are some important exclusions.