Home Insurance Exclusions

A standard homeowners insurance policy (HO-3) typically covers damage caused by: fire or lightning, windstorm or hail, explosion, riot or civil commotion, damage from aircraft or vehicles, smoke, vandalism or malicious mischief, theft, and falling objects. It also covers damage from the weight of ice/snow/sleet, accidental water overflow from plumbing/HVAC, and frozen plumbing. Most policies do NOT cover floods, earthquakes, normal wear and tear, or intentional damage.

Replacement cost coverage pays to replace damaged items with new ones of similar quality without deduction for depreciation. For example, if your 5-year-old TV is destroyed, you get enough money to buy a new comparable model. Actual cash value (ACV) coverage pays the depreciated value of items at the time of loss, accounting for age and condition. Using the same example, you would only receive what a 5-year-old TV is worth today. Replacement cost coverage has higher premiums but provides better protection.

Yes, standard homeowners and renters policies have coverage limits (sub-limits) for valuable items like jewelry, art, collectibles, and electronics. For example, jewelry might be limited to $1,000-$2,000 total. If your valuables exceed these limits, you need scheduled personal property coverage (also called a 'floater' or endorsement) to fully protect them. This additional coverage provides higher limits, protection against more types of losses (like accidental damage or mysterious disappearance), and often waives the deductible.

Factors affecting your home insurance premium include: location (crime rates, proximity to fire station, natural disaster risk), home characteristics (age, size, construction materials, roof condition), coverage amounts and deductibles, home safety features (smoke detectors, security systems, storm shutters), claims history (both personal and for the property), credit score (in most states), proximity to risks (coastlines, forests), and additional coverages or endorsements you select.

Homeowners insurance covers some but not all types of water damage. It typically covers sudden and accidental water damage from burst pipes, accidental overflow of plumbing fixtures, roof leaks from storm damage, and water damage from extinguishing a fire. However, it generally does NOT cover damage from: flooding (requires separate flood insurance), sewer backups (requires a specific endorsement), gradual leaks or seepage, ground water, or damage due to neglect or poor maintenance. Understanding these distinctions is crucial when filing claims.