Homeowners insurance: what’s covered and what’s not

Dwelling coverage helps protect your home’s structure, such as the walls, roof, and foundation. It helps cover the cost of repairing or rebuilding the essential structural elements of your home, but it may also apply to your garage, deck, or other structures attached to your home.

If you live in a condo or multi-family home rather than a single-family home, you may be covered by a Homeowners Association (HOA) insurance policy rather than an individual homeowners insurance policy. HOA insurance typically covers the building’s structure and common areas, but it may not protect everything inside your unit.

You may wish to obtain a unit owners policy to help protect your personal property and certain improvements within your unit. This can also include loss assessment coverage, which may provide additional funds if the HOA issues a special assessment to cover costs that exceed your policy or deductible.

Flood damage is not commonly covered by most homeowners insurance policies. If you live in an area prone to flooding or water damage, you may consider a standalone flood insurance policy. These policies cover damage caused by rising water from outside your home, such as a river overflowing due to heavy rains or a storm surge from a hurricane.

A standard homeowners insurance policy may cover water damage from a burst pipe or a plumbing issue. However, not all water damage is covered under a homeowners insurance policy, so you may wish to pursue optional water damage coverage. For example, water damage from an overflowing sump pump or caused by hurricanes is not covered in most policies.

Your policy may cover damage if insects or pests cause an accident that is already included in your coverage, such as a fire or a structural collapse. Otherwise, damage from pests like termites, mice, or other rodents is typically not included in a homeowners insurance policy and would require additional coverage.

Some policies may cover mold-related incidents if it relates to an incident covered by your policy, such as a burst pipe. Most homeowners insurance policies will not cover mold damage or removal, especially when mold is a result of neglect from an untended home maintenance issue.

While damage caused by the winds from hurricanes and tornadoes is typically covered by homeowners insurance, damage from natural disasters like earthquakes or sinkholes will not typically be covered. In some states or high-risk areas, wind and hail damage is often excluded from the primary policy, requiring separate coverage. The deductible is typically calculated as a percentage of the home’s insured value instead of a flat fee.

Damage resulting from standard wear and tear in your home is your responsibility, and your insurance will likely not cover the cost of basic repairs.

Most policies cover jewelry and watches under personal property, but only up to a specific limit. If you own any jewelry that is valued above your personal property limits, you may wish to extend your coverage.

This optional coverage goes toward damage costs when water backs up from your sewer, drain, or sump pump. Note that this is separate from flood coverage or surface water backup.

Contents replacement cost insurance covers loss or damage to personal property. This coverage is based on current replacement costs and does not account for depreciation, meaning you can afford new replacements at today’s prices. This coverage is subject to policy limits.