Buying A Home? Make Sure You Understand What Home Insurance Does—And Does Not—Cover!



Buying A Home? Make Sure You Understand What Home Insurance Does—And Does Not—Cover!


Getting homeowners insurance when you purchase a house is a non-negotiable. But while standard home insurance policies provide a high level of coverage and protection, they don’t cover everything—and in order to protect your home (and your investment), it is important to understand what potential issues might fall outside your home insurance umbrella.


A recent article from realtor.com outlined the surprising things home insurance does not cover, including:

  • Floods. While home insurance typically covers water issues like burst pipes, if your home is flooded due to a hurricane or excessive rain, most standard home insurance policies won’t cover the damage. In order to get coverage, you will need to purchase additional flood insurance.

  • Earthquakes. Similar to floods, most standard home insurance policies don’t cover earthquakes—so if you want coverage, you will need to buy a separate earthquake insurance policy.

  • Renovation damage. If you are doing major renovations on your home—like gutting the interior or replacing the roof—most home insurance policies won’t cover the damage. If you want to protect yourself in the case of damage caused by the contractor, you will need to purchase a renovation policy.

The Takeaway:

So, what does this mean for you? If you are thinking about buying a home, it is important to understand the limits of your home insurance policy—and that you purchase additional coverage when necessary to protect your home.