When it comes to protecting your most valuable asset – your home – understanding your insurance policy is absolutely crucial. Most of us wisely invest in homeowners insurance, but there’s a common misconception that it covers “everything.” Unfortunately, that’s just not the case. Many standard policies have specific exclusions that can leave you in a real bind if you’re not aware of them.
As your local Tacoma insurance expert, I want to shed some light on what your typical home insurance policy doesn’t cover, so you can make informed decisions about your protection. Let’s dive in:
1. The Big One: Flood Damage
This is probably the most significant exclusion people are surprised by. Many homeowners assume that if their basement floods from heavy rain or an overflowing river, their standard policy will kick in. It won’t.
Standard home insurance policies do not cover flood damage. This includes damage from:
- Surface water
- Coastal storm surges
- River overflows
- Heavy rainfall that leads to widespread flooding
If you live in an area prone to flooding – and let’s be honest, many areas can experience unexpected flooding – you’ll need a separate Flood Insurance policy, often backed by the National Flood Insurance Program (NFIP). Even if you’re not in a high-risk zone, a significant amount of flood damage occurs in moderate-to-low risk areas. It’s always worth discussing with an agent.
2. Shaky Ground: Earthquake Damage
Living in the Pacific Northwest, this is another critical exclusion to be aware of. While your standard home policy might cover fire damage that results from an earthquake, it typically will not cover the direct damage caused by the earthquake itself – things like structural damage to your foundation, walls, or roof.
For true earthquake protection, you’ll need a separate Earthquake Insurance policy. These policies often come with higher deductibles, but they can be a lifesaver in our seismically active region.
3. The March of Time: Wear and Tear, Neglect, and Maintenance Issues
Your home insurance is designed to protect against sudden, accidental losses, not the inevitable deterioration of your home. This means your policy generally won’t cover:
- General Wear and Tear: The roof getting old, pipes corroding, or your deck rotting over time.
- Lack of Maintenance: If a problem arises because you neglected routine home maintenance (e.g., not cleaning gutters leading to water damage, or ignoring a leaky faucet for months).
- Mold, Mildew, and Fungi: While some policies might offer limited coverage if the mold is a direct result of a covered peril (like a sudden burst pipe), widespread mold due to prolonged moisture or neglect is typically excluded.
- Pest Infestations: Termites, rodents, and other pests and the damage they cause are usually considered a maintenance issue, not a sudden peril.
4. Other Common Exclusions to Be Aware Of:
- Sewer Back-Up and Sump Pump Overflow: While often an add-on, standard policies usually don’t cover water damage if your sewer backs up into your home or your sump pump fails. This is a common and often costly type of damage!
- War or Nuclear Hazard: These catastrophic events are universally excluded.
- Government Action: Seizure or destruction of property by governmental authority.
- Ordinance or Law: The increased cost of repair or reconstruction due to updated building codes or laws. Some policies offer limited coverage for this, but it’s important to check.
So, What Can You Do?
The good news is that for many of these exclusions, you can often purchase additional coverage or a separate policy to fill the gaps. That’s where I come in!
My goal at Dan Marek Insurance is to ensure you’re truly protected. Don’t assume anything when it comes to your home. Let’s sit down, review your current policy, and discuss your specific risks and needs. We can explore options like:
- Flood Insurance
- Earthquake Insurance
- Sewer Back-Up / Sump Pump Overflow Endorsements
- Service Line Coverage (for damage to underground utility lines)
Your home is too important to leave anything to chance. Give us a call or stop by the office. We’re here to help Tacoma-area homeowners navigate the complexities of insurance and find peace of mind.
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