Home Insurance

Common Homeowners Insurance Coverage Exclusions

By March 7, 2018 No Comments

Shopping the market for a homeowners insurance policy can be confusing.  You expect when you buy insurance you have adequate coverage.  Do you have insight into what is covered and what is excluded, though?  Homeowners insurance coverage exclusions are standard on many policies.  Awareness of common homeowners insurance coverage exclusions can help you get supplemental insurance added, where necessary.

Standard Policies

The most common types of homeowners insurance policies are HO-2 and HO-3.  HO-1 are the most basic, though not commonly sold anymore.  At Brashears insurance, we typically avoid both HO-1 and HO-2 policies. However, HO-2 is more common and is considered a broad form policy.  It usually covers 15 different types of perils.

A peril, if you did not know, is a common issue that arises for homeowners.  Think of peril as a type of accident.  The 15 perils typically covered by an HO-2 include:

  • Windstorm or hail
  • Explosion
  • Riot
  • Damage caused by an aircraft
  • Fire or lightning
  • Damaged caused by a vehicle
  • Smoke damage
  • Theft
  • Vandalism
  • Objects falling
  • Snow, ice or sleet weight causing damage
  • The accidental overflow of water from a sprinkler system or household appliance. Heating and air conditioning are also included.
  • Plumbing freezes
  • Damage from a steam or hot water heating, air conditioning, or fire prevention system
  • Damage from an artificially generated current of electricity

The other type of standard policy is an HO-3 policy, which is the type of homeowners insurance policy we recommend.  The policy is known as a special form, because it will cover everything, except for what is excluded.

Common Homeowners Insurance Coverage Exclusions

Floods are one of the most common exclusions. Under many homeowners insurance policies, if your home floods, you are not covered.  A separate flood insurance policy is required under most circumstances.

Another common exclusion is an act of war.  Say an army invades and destroys your home.  Considered an act of war, this is an excluded type of coverage by your insurance company.

You also do not have coverage if your home’s value drops.  The value of your home is tied to the coverage you need, but if your home’s value drops for some reason, it is just a loss.

Pollution is another widespread exclusion.  If you have pollution losses, the individual responsible would be paying the bill.  Nuclear accidents are also a standard exclusion.

Earth movement and/or Earthquake is another one worth mentioning.  If your house were on a cliff or ashore, typical policies would not cover the risk of home movement and associated damage.

Homeowners insurance policies will cover many disasters, but not everything.  It is essential as you shop for a policy that you work with an insurance provider that can provide you with adequate details.  Reach out to the team at Brashears Insurance today, so you can work to understand your coverage needs and how to meet them with a homeowners insurance policy.