Five Things not covered by Homeowners Insurance

Homeowners insurance companies have added some very beneficial coverages over the last few years making today’s homeowners insurance policies very comprehensive. Some of the new coverages include Water Seepage & Leakage Explained (anderson.insure) and Service Line Coverage – The Hottest Topic Between Plumbers & Utah Insurance Agents | Anderson Insurance Group.

Even with these additional benefits, there are still some things that homeowner’s insurance does not cover. Regardless of your insurance company, here are a few perils that are not covered:

  1. A new roof. Traditionally, insurance companies never paid for roofs that simply wore out or were are at the end of their life expectancy. About ten years ago, aggressive roofers started to exploit the homeowners insurance policies and were able to get many old and worn-out roofs replaced under the guise that the roofs had wind or hail damage. Insurance companies simply cannot afford (and then pass the cost down to the consumer) to replace a roof because it is at the end of its cycle. To prevent abuse by roofing contractors, insurance companies have started to add language to their policies to lower or prevent payment for roofs that are simply old, whether damaged by a covered peril or now. These new endorsements, ACV – actual cash value roof coverage or roof schedules and higher wind/hail deductibles and will significantly change the way roof claims are handled going forward.
  2. Water damage from surface water. In Utah, our low water tables and high desert climate enable us to add inexpensive square footage by building basements. That’s great but water and basements don’t do well together. If you watch a contractor build a basement, they pour the foundation walls first and then add the floor. There is always a gap between the wall, and the floor of the foundation. Water can seep through this gap or other cracks in the foundation damaging flooring and baseboards. This type of water damage is not covered by homeowners’ insurance. The source of water may be a leaky sprinkler pipe or a rain gutter that is clogged or that drains too close to the home. If the source is a rain gutter that drains too close to the home, add a drainage pipe that will move the water away from the home. Discovering the exterior source of the water and making necessary changes is key to prevention of future damage.
  3. New windows. On occasion, we will receive inquires from homeowners asking if homeowners insurance will pay for new windows and the answer is, not really. Faulty workmanship, faulty construction or poor materials used in construction is not a covered peril. Windows wear out over time and need to be replaced. The settling of the home can also cause windowpanes to crack or separate and this is not a covered loss. If a hurricane blows through your neighborhood, and destroys all your windows, that would be a covered loss. If you have one window that has been hit by a baseball or rock, that will most likely be under the $1000.00, $2500.00 or $5000.00 deductible.
  4. Valuable jewelry or tools that are used in a business. Homeowners insurance is, homeowners insurance, and not intended to cover jewelry or a business. Endorsements can be made to a homeowner’s policy to cover more expensive jewelry items or tools kept at home that are used in a business. If you have extra valuable items, call your homeowners insurance agent for information on how to cover these items.
  5. Earthquake is a common exclusion on all homeowners policies. It can be added to a homeowners policy via an endorsement but these days, only about half of the insurance companies offer earthquake coverage. When adding earthquake insurance, take into account the three primary factors, the much higher deductible, the damage zone your property is located in and the cost. Earthquake insurance normally doubles the cost if it can be added to a homeowners policy. Earthquake Insurance in Utah: Cost — Deductibles — Damage Zones — | Anderson Insurance Group
  6. Mold, that does not originate from a leaky water pipe is also a common exclusion. This mold could be caused by rain or water that is entering the home through a faulty roof, window, or foundation and normally seeps in over an extended period of time. Mold damage can be covered if the cause is a sudden and accidental plumbing leak inside the home.. If the damage however, has occured over an extended period of time, it can be excluded if you do not have coverage for Water Seepage & Leakage Explained (anderson.insure)
  7. Homeowners Insurance does not cover things that are covered by a home warranty. For example, if the plumbing under your sink breaks and water causes damage to your home, home insurance will cover all of the resulting damage but will not cover the repair to the pipe, that would be covered by a home warranty, What is the Difference between a Home Warranty and Homeowners Insurance? | Anderson Insurance Group

This is not a complete list of home repairs or damage that is not covered by homeowners’ insurance. Please refer to your specific homeowners policy for a complete list of perils that are not covered or reach out to a knowledgeable Anderson Insurance Group agent today.

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