Home Insurance: What Isn’t Covered
Home insurance provides essential protection for your property, understanding what your policy doesn’t cover is just as important as knowing what it does.
Many homeowners are surprised to discover significant gaps in their coverage when making a claim. Understanding these common exclusions can help you take proactive steps to protect your home and avoid unexpected out-of-pocket expenses.
Vermin Damage: The Silent Destroyer
One of the most common and potentially costly exclusions in standard home insurance policies is damage caused by vermin, pests, and insects. This includes: Rodent Invasions, Termite Destruction, Insect Damage
The insurance industry’s rationale for these exclusions is that vermin damage is considered preventable through proper home maintenance and regular inspections. However, even vigilant homeowners can face unexpected infestations that lead to significant repair costs.
Beyond vermin damage, several other significant risks are typically excluded from standard home insurance policies:
Mould and Fungus: Unless directly resulting from a covered water damage event.
Gradual Water Damage: While sudden and accidental water damage (like burst pipes) is typically covered, slow leaks that occur over time are usually excluded.
Mechanical Breakdown: The failure of home systems like air conditioning, heating, or appliances due to mechanical or electrical breakdown is generally not covered unless specifically covered by a policy.
Earth Movement: Many policies exclude or severely limit coverage for damage caused by earth movement.
Wear and Tear: Perhaps the broadest exclusion is for normal wear and tear. Insurance is designed to cover sudden, unexpected events – not the gradual deterioration that affects all homes over time.
If you’re concerned about specific risks to your property, consult with one of our brokers who can:
- Review your current policy to identify coverage gaps
- Suggest appropriate endorsements or supplemental policies
- Help create a comprehensive risk management plan
- Advocate on your behalf if coverage questions arise during a claim
By addressing these common exclusions proactively, you can create a more comprehensive protection strategy for your most valuable asset – your home.