Things your Insurance May Not cover

There will always be gaps in home owner’s insurance coverage that you can’t do anything about.  Insurers aren’t going to cover you for a nuclear accident, for example, no matter how many companies you ask.

  “Exclusions” in coverage vary by the insurer, but if when something goes wrong, it may be way too late to begin learning about your policy.

If you know about some of them in advance, you may be able to switch carriers or buy extra insurance to stay protected.

Mold and water damage

When Ed Mc Mahon won a 7.5 million dollar lawsuit against his insurer over mold that he said sickened his family, a huge increase in mold-related claims occurred and which led insurers to eliminate or at least reduce their exposure.  Many insurers also limit how much they’ll cover for water damage.

In some cases, you may have trouble getting coverage for a home that’s had water claims in the past.

 

Sewer backup

Sewage backups are frequently not covered by home owner’s policies unless you purchase a special rider.

 Many homeowners who experience this particular disaster try to get their cities to pay for the damage, but governments typically aren’t liable unless the homeowner can prove negligence — and is willing to go to court over the matter.

A cheaper solution?  Buy the rider for $50 to $100 if you are not covered.

 

Neglect

Insurance generally covers sudden and unexpected losses such as damage from a falling tree but not losses from termites rodent infestation or a plumbing leak that never got fixed.  Insurers expect you to take care of any problems in the home and prevent any damage from getting out of control.  If it does, you may not be covered.

Bruce Johnson, author of "50 Simple Ways to Save Your House," recommends you conduct regular inspections of the exterior and look for cracks, decay or water damage.  Also check the condition of the roof,  the basement or crawl space for possible hidden problems.  Home maintenance problems left unchecked only get more expensive over time.

To learn more about other items that may be excluded from your policy, read the article, 10 Things your Insurance May Not Cover.