What Homeowners Insurance Does Not Cover

As a homeowner, you need to know the difference between homeowners insurance and a home warranty. Both provide their own unique coverage of different areas of your Inland Empire property. Lenders require that everyone who borrows money for their home purchase must also take out insurance on their home. While it helps to know what this insurance covers, it is equally important to understand what it does not cover. That way, you may properly prepare yourself in case these issues arise in the future.

What Homeowners Insurance Does Not Cover

Mother Nature

A typical homeowners policy does not cover things like damage from earthquakes. In Southern California, that may pose a problem. However, many insurance companies here also offer separate policies for earthquake coverage. While a homeowners policy typically covers flooding due to a burst pipe inside your home, it will not cover it if Mother Nature created the flood. Unfortunately, private insurance companies usually cannot afford to cover the extensive damage flooding creates. But the government stepped in to provide this insurance for homeowners living in flood-prone areas. In fact, FEMA announced earlier this year that some Riverside County homeowners may be eligible for a 20% discount on flood insurance.

Some Mold Issues

If you find mold from a burst pipe or water damage due to firefighting efforts inside your Inland Empire home, your homeowners insurance policy usually covers the cost to remediate it. However, if Mother Nature or another force outside of your home caused the mold (humidity, a slow leak), most homeowners’ policies do not cover the damage.

Sewer and Drain Backup

This is another item not covered under a typical homeowners policy. If you live in an area that sees flooding around drainage areas during a heavy downpour, you might want to consider obtaining water backup coverage when you get your flood insurance. It is separate from flood insurance but might equally be worth checking out if this may be a potential problem during high rains.

Regular Wear and Tear

Homeowners’ insurance is meant to cover most unavoidable emergencies. Unfortunately, the cost to repair holes in the walls due to you moving furniture around or carpet falling into disrepair due to regular wear and tear falls on your shoulders, not the insurance company. Therefore, it makes the most sense to stay on top of any regular maintenance and repairs as they arise. This helps identify bigger issues when they are more manageable (and more budget-friendly to repair).

Always ask your insurance agent about what your homeowners insurance does and does not cover when you sign up for it (or at any time you have a question). They know the policy best and are your best information source related to your insurance policy.

Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty