What Standard Homeowners Insurance May Not Cover

Whether you’re a soon-to-be or long-time homeowner, don’t be caught off guard in a disaster by your homeowners’ policy because you don’t know what damages and thefts it does and doesn’t cover.

COMMONLY EXCLUDED DAMAGES

Homeowners’ policies generally don’t cover damage from natural disasters like floods, landslides, sinkholes, and earthquakes. For such protection, you may need to buy flood insurance from the National Flood Insurance Program or a private insurer. Additional insurance is also advised if you live in an earthquake-prone area or are at risk for landslides or sinkholes.

VALUABLE POSSESSIONS

Possessions, such as expensive jewelry and collections like art, cars, antiques, etc., aren’t fully covered. To insure these items for full value, you should have them professionally appraised and then purchase a personal property endorsement or floater to supplement your homeowners’ insurance. Rates vary between insurers.

HOME OFFICE EQUIPMENT

According to the Insurance Information Institute, a typical homeowners’ policy provides only about $2,500 coverage for business equipment. But it estimates you can double that coverage for as little as $25.