6 things home insurance won't cover

6 hazards home insurance doesn't cover
6 hazards home insurance doesn't cover © auremar/

When disaster strikes your home, home insurance is supposed to be there to help you pick up the pieces. Most of the time, it does.

But the coverage does have limits, says Carole Walker, executive director of the Rocky Mountain Insurance Information Association, an industry group based in Greenwood Village, Colo.

"Many people don't take the time to understand what is and isn't covered and mistakenly assume insurance will pay for any type of damage," Walker says.

A Bankrate survey found that 81 percent were aware flooding is not covered by regular homeowners insurance. You may have heard earthquakes also require special coverage. Yet you may not know that there are other types of damage that are excluded from most policies as well.

Walker says many policyholders learn about the exclusions the hard way.

"We often hear from people that the only time they think about what their insurance covers is when they go to file a claim," she says. "Of course, then it's too late."

Following are six hazards a standard home insurance policy may not cover.

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Take note, there are things insurance won't cover on your home.

Most of the time, when there's trouble with your home, your insurance will take care of you. But there are exceptions, and you should know about them.

One of these exceptions is mold. Many policies either limit coverage for mold, or exclude the coverage completely. It can be a problem if your basement floods or a pipe is leaking; and because it can present a health risk, mold isn't something you want to persist.

Feel the earth move?

Also, most home insurance policies won't cover damage associated with so-called earth movement, whether earthquake or a sinkhole, like those seen in Florida and Texas.

Despite the fact they cause an estimated $5 billion in damage in the U.S. each year, termites are another exception to home insurance coverage. To avoid having termite damage eat at you, it's advised that you have regular home inspections for early detection, to limit potential damage.



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