What Are The Exclusions In Homeowners Insurance Policy?

People who go for homeowner’ insurance, often mistakenly think that they are covered from all natural perils. A homeowner’s insurance policy does offer coverage for damage caused by fires, lightning, windstorms and hail; but not all natural disasters are covered.

For instance, damage caused by acts of God such as earthquakes and floods are not typically covered by homeowners insurance. So also, acts of war are typically excluded from standard homeowner’s insurance policies.

If you live in an area prone to these natural disasters, you will need special coverage to insure your property from floods or earthquakes. However, most basic homeowner’s insurance policies cover hurricanes and tornadoes.

Flood coverage can be taken from the National Flood Insurance Program and a few private insurers. You can also get earthquake insurance as a separate policy or as an endorsement by paying extra premium.

Homeowners insurance doesn’t cover the normal wear and tear, and will also not pay for damages that are caused by poor maintenance or negligence.

In addition to those mentioned above, here is a brief list of perils that are typically not covered by home insurance:

  • Increased cost due to enforcement of any building ordinance or law
  • Neglect or failure to make repairs
  • Corrosion, deterioration, decay or rust
  • Wear and tear
  • Fungi
  • Nuclear hazard
  • War

The above is just illustrative. For a comprehensive list you may contact your insurance agent.