Homeowners insurance is essential, but many people assume it covers more than it actually does. Here are five things that might surprise you when it comes to coverage limits.
1. Flood damage
Standard home insurance policies typically don’t cover floods. If you live in a flood-prone area, you’ll need a separate flood insurance policy.
2. Earthquakes
Like floods, earthquake damage usually requires its own policy or a special rider. Without it, you’re unprotected from serious structural damage.
3. Wear and tear
Home insurance covers sudden, unexpected damage — not gradual wear and tear. If your roof leaks due to age, it likely won’t be covered.
4. Expensive personal items
Jewelry, art, or high-end electronics might exceed the standard coverage limit. To fully protect them, you may need to add a scheduled personal property endorsement.
5. Business equipment
If you run a home business, your equipment may not be covered under your homeowner’s policy. You might need separate business coverage.
Always read the fine print and ask your insurance provider about add-ons. Understanding what’s not covered is just as important as knowing what is.