4 Things That Are Commonly Not Covered By Homeowners Insurance

Posted on: 16 July 2021

If you have homeowners insurance, it is essential to know what is not covered by your insurance so that you can get the right insurance for these items. Homeowners insurance is designed to protect your home, personal belongings, and other structures on your property. It is also designed to provide you with liability protection and against loss of use of your home.

#1: Business Equipment

It has become more and more common to operate businesses out of one's own home. If you are operating a business out of your home, you will want to add a business insurance rider to your existing home insurance policy, or you are going to want to purchase a separate business insurance policy.

A business rider will allow you to protect all of your business assets and equipment. That way, if they are damaged when the rest of your home is damaged, those items will be protected as well.

#2: Valuables

Second, most insurance policies have a limit to the value of a single item that they will replace. Your overall personal property protection is larger, but the coverage for an individual item is often limited.

If you have any items in your home worth thousands of dollars, such as fine art, firearms, or electronics, you will need to go through a few extra steps to cover those items. You can add riders to your homeowners insurance policy for individual valuable items, or you can add valuable personal property to your insurance policy.

Make sure your insurance will cover all the high-value items in your home.

#3: Repairs

Your homeowners policy is designed to fix damage from specific events, such as a fire, theft, vandalism, or lightning. It is designed to step in when your home is damaged by something unexpected.

It is not designed to cover ordinary household maintenance and repairs. It is your job to take care of regular repairs, such as maintaining your roof or getting a new water heater when your water heater gets old.

#4: Identity Theft

Ident theft has become more and more common by stealing your personal information and then using that personal information to obtain credit and loans that harm your life. In general, when you experience identity theft, you have to deal with it on your own. Your homeowners insurance does not cover it.

However, some insurance providers now allow you to add identity theft coverage to your policy. If you add that coverage to your policy, you will be provided with protection for attorney costs and lost wages associated with your identity theft experience.

#5: Cash

Finally, you are going to want to be careful with keeping cash in your home. Most policies will only cover a very small amount of cash. You don't want to keep thousands of dollars in your home; if it is stolen, you will not recover the full amount. You should hold cash somewhere else, like inside a safe deposit box.

It is essential to understand what your homeowners insurance policy coverage does and doesn't cover and what riders and add-ons you can add to your policy to fully cover everything in your home.