What’s Not Covered By Standard Home Insurance

What’s Not Covered By Standard Home Insurance

July 26, 2022

You already know that you are covered in many ways by home insurance to help restore your home after a fire, repair precious property after a break-in, or cover legal expenses if your property is damaged by someone. So what’s not covered by insurance for homeowners?

For any single mishap or tragedy, don’t assume your policy would kick in. It’s important to know the truth in order to prevent a headache down the road.

Here is what is not covered by homeowners insurance

Short-term Rental

If you’re thinking of renting out your house, first check your insurance policy for homeowners. Many policies would not cover home-sharing.

That ensures that their personal property would not be covered by your homeowners’ insurance if a fire starts when a paying visitor is in your house. And when your short-term renter runs away from it, your belongings won’t be secured. That said, Airbnb and similar companies have insurance plans of their own that you can check out.

Some insurance policies for homeowners could cover you for a one-time case. But you will have to buy landlord insurance, or business insurance if you plan to make Airbnb a daily source of income. If you plan to sublet or rent your home, whether it’s a room or the whole house.

Related: Why Having a Life Insurance a Good Idea?


Another common, destructive natural disaster that is prevalent across the U.S., particularly in the states of California and Oklahoma, is earthquakes.

For damage caused by earthquakes, homeowner insurance plans would not cover you. You’ll probably need to purchase a separate earthquake policy to complement your base homeowners insurance policy if you live in a high-risk location.

You’ll even need to buy landslides and sinkholes add-on coverage!

What's Not Covered By Standard Home Insurance


One of the most frequent natural disasters in the U.S. is floods. Yet floods triggered by natural disasters are not covered by the regular insurance policy for homeowners.

Well, flooding is so frequent and likely to cause serious harm that it can not be covered by most home insurers. Many insurers can’t take this chance.

That said, by buying a separate flood insurance policy, in certain cases, you’ll be legally obliged to do so, you can cover yourself.

Remember: insurance policies for homeowners can cover some of the aftermaths of earthquakes, such as damage caused after the tremors by a fire, explosion, or robbery.

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Businesses at home

Your homeowner’s insurance will not cover your company for data loss, loss of profits, or responsibility for injury and damage.

Your homeowner’s insurance can cover you with up to $2,500 in business products and equipment stored in your home, or up to $1,500 if the loss occurs off-site.

You’ll want to make sure you’re covered by looking at a business insurance policy, or a Business Owners Policy (BOP) for small businesses if you really run a business from home.

Damage from inadequate maintenance

There’s a lot to stay on top of, from home plumbing to heating and cooling systems. But when a house is kept clean and in good repair, long-term issues are less likely to arise.

It’s the same reason why you’re not going to be covered with bed bugs and some burst water pipes. You can’t prevent any unavoidable problems from surfacing, but by keeping up with your standard home maintenance checklist, you can reduce your chances.

Either way, not all plans are the same, so check and find out what you are and are not covered by your insurance policy.

Some people believe that homeowners insurance protects them for all eventualities, but that presumption will prove expensive in the long run.

Never assume insurance covers everything. Unfortunate or drastic stuff that can go wrong in everyday life is protected by your policy. Understand the limitations and exclusions, in addition to paying careful attention to what the policy covers you for.

It’s safer to be safe than sorry if you’re uncertain or unclear about what your homeowners’ policy includes.

For more information about homeowners’ insurance

What's Not Covered By Standard Home Insurance

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