11 Crazy Scenarios Not Covered by Home Insurance

Have you ever been struck by lightning? Neither have I. The odds you or I will be struck this year are about 1 in 1.6 million. Needless to say, I don’t lose any sleep thinking about it. But just ask Lee Trevino what the odds of being struck are. Lee Trevino is a former PGA Golfer who has been struck by lightning not once, not twice, but THREE times! Because once something happens to you, probability goes out the window.
The Odds become 100%!
Which brings me to the point of this article. Is your home covered in crazy and unlikely scenarios?
Here are 11 Crazy Scenarios That Are Not Covered by a Typical Home Insurance Policy:

1. Flood Damage: Most standard home insurance policies do not cover flood damage. Homeowners need to purchase separate flood insurance through the National Flood Insurance Program (NFIP) or a private insurer.
2. Earthquake Damage: Earthquake damage is generally not covered under standard home insurance policies. Separate earthquake insurance is needed to cover these risks.
3. Wear and Tear: Regular wear and tear, maintenance issues, and damage caused by neglect are not covered.
4. Mold and Rot: Damage caused by mold, rot, and similar issues is often excluded unless it results from a covered peril.
5. Pest Damage: Damage caused by termites, rodents, and other pests is usually not covered.
6. Acts of War and Nuclear Hazards: Damage caused by war, nuclear hazards, and similar catastrophic events are generally excluded.
7. Intentional Damage: Any intentional damage caused by the homeowner or residents is not covered.
8. Business-Related Liabilities: Damage or liabilities arising from home-based businesses may not be covered unless a specific endorsement or additional coverage is purchased.
9. High-Value Items: Standard policies often have limits on coverage for high-value items like jewelry, art, and collectibles. Additional riders or separate policies are needed for full coverage.
10. Sewer Backup: Damage caused by sewer or drain backups is typically not covered unless additional coverage is purchased.
11. Power Failure: Damage caused by power failures not originating from the insured property may not be covered.
12. Identity Theft: Losses related to identity theft are not usually covered under standard home insurance policies, though some insurers offer optional endorsements for this risk.

Number 7 makes me laugh. No duh insurance won’t pay out if I break all my windows on purpose.
Jokes aside, some of these caught me by surprise. Like number 8 for example. How many businesses have been started at home? Only to find out when they need it that their insurance won’t cover certain damage.
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**Disclaimer:** 
I am not an accountant or an attorney or an insurance broker. The information provided above is for general informational purposes only and should not be considered legal or accounting or insurance advice. For advice on legal or accounting or insurance matters, please consult with a qualified professional.
 

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