6 Things Your Homeowners Insurance Policy Doesn't Cover
You might be surprised to discover that there are some “acts of God” and other items that your homeowners insurance policy won’t cover. Before you assume that your most expensive asset is protected, read through your policy. You might find the following coverages missing:
Overland Flooding
During the 2013 Alberta floods, a lot of homeowners were surprised to find out that standard home insurance won’t save you from water damage that comes through windows or doors.
It’s an issue that confuses a lot of Canadians: something uncontrollable as a flood seems exactly the kind of thing you your homeowners insurance policy should cover. You can purchase flood-related coverage, but only as an optional package – and only with some providers. On top of that, it’s a fairly pricey addition to your policy.
Water damage is a tricky area of insurance. Aside from flooding, separate protection for sewer backup or burst water mains is also needed. If you live in a risky area for flooding or you simply want to make sure you’ve got the best coverage possible, check with your provider to find out the limits of your water damage protection.
Wear and Tear
You bought it, and now you have to take care of it. Unless something unexpected and out of your control took place, it isn’t the insurance company’s job to maintain your home. Need new roofing or plumbing? That’s on you.
It’s important to understand this because not only is the cost of maintenance not covered, but any damage that stems from your lack of maintenance will also not be covered by your homeowners insurance policy.
Landslides or Earthquakes
While these are not common threats across the country, earthquakes and landslides may occur when you least expect them. If your home takes damage due to one of these then your insurance company won’t pay the associated costs unless you have paid for extra coverage.
Mould
Because maintenance is your responsibility, if you let mould build up in an area of your home you’ll have to pay for any repairs in that area yourself. Your homeowners insurance policy won’t come anywhere near it.
Home Business
Running your own business can be a fulfilling way to make some extra money, or even replace the need for a regular 9-to-5 job. However, if you run your business out of your home you’ll need small business liability coverage and increased coverage on the contents of your home. Your homeowners insurance policy won’t cover items located in your home office, and if you meet with clients in your home and something happens your regular homeowners liability won’t apply.
Drugs
If you decide to go Walter White or Nancy Botwin and start producing illegal substances in your basement, your homeowners insurance policy will basically be null and void if the operation causes damage to the home. Also, you'll probably go to jail.
Home insurance is a crucial investment for any homeowner, but it’s important to know that you are getting the best deal on your policy, and how far that coverage goes. You might need to purchase additional coverage to ensure that your home is truly protected.