1. Does home insurance cover floods?
If the “flood” you speak of is a puddle of water from a burst pipe, yes, insurance should cover it.
But if the flood is due to excessive rain, a hurricane, or an overflowing river, most standard home insurance won’t cover it. (The National Flood Insurance Program defines flooding as “an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties.”)
With both floods and earthquakes (more on that below), the damage caused by these natural disasters can be so extensive that private insurance companies can’t afford to provide coverage for all (or will only provide costly policies to select homeowners).
Luckily, though, the federal government has stepped in and is now the primary seller of flood insurance.
If you live in an area that’s prone to floods, you’ll want to purchase this additional flood insurance. This is especially true since flooding tends to cause expensive damage—even a single inch of floodwater can result in $25,000 in repairs, on average. So don’t buy a home in a flood-prone zone without it!
2. Does home insurance cover earthquakes and landslides?
If you live in an area with earthquakes, you’ll need to purchase additional insurance here, too.
Most insurance companies offer special earthquake policies or, if you live in California, you can purchase it from the California Earthquake Authority (most Californians live within 30 miles of an active fault line, so it makes sense to do so).
Your insurance company may offer you a discount or even a rebate when you pay for certain improvements that help your home better withstand earthquakes.
Now, when it comes to landslides, your earthquake insurance may cover this — but it may not. You may need to additionally purchase landslide insurance through a Difference in Conditions (DIC) policy.
But again, it’s a conversation to have with your insurance company.
3. Does home insurance cover water leaks?
It depends. Damage caused by slow leaks—technically “seepage and leakage”—can be denied coverage. Water damage has to be “sudden and accidental.”
4. Does home insurance cover mold?
This depends on what caused the mold to appear. A policy might cover mold if it’s the result of a “covered peril,” such as water damage from a burst water heater or firefighters dousing flames on your home.
However, mold won’t be covered if it was caused by perils outside your policy, such as flooding (see above), or preventable ongoing problems, like a slow water leak or high humidity.
5. Does home insurance cover sewer and drain backups?
If the sewer backs up and fills your house with water, you might have to clean up the mess yourself—and on your own dime.
6. Does home insurance cover wear and tear?
Sorry, your home insurance policy also won’t pay for damage caused by normal wear and tear.
The policy exists for actual emergencies that can’t be avoided, not damage that could easily have been prevented. So make sure not to neglect little problems at home that could balloon into bigger problems later on!
7. Does home insurance cover damage from renovations?
A lot of homeowners don’t realize they need to take out a specific renovation policy if they’re doing major work, even if the contractor has a builder’s risk policy.
The builder’s risk policy covers only new construction—not the existing structure.
Even if the house is a teardown, a renovation policy will cover any liability issues for people who wander onto the property and get hurt.
If someone gets hurt on the property, you’re liable. If neighborhood kids are playing around in the empty house, that’s your liability.
8. Does home insurance cover historically accurate repairs?
If you live in a landmark area and you need permission from the historical society to make changes to your home, there might be a cap on how much your insurance will pay to fix a problem. And the historical society might dictate the kinds of material you must use on your home, no matter how expensive it is.
9. Does home insurance cover acts of war?
If the U.S. government determines we are at war, and your home is destroyed as a result of the war, you will not be covered.
Destruction from acts of terrorism, however, is generally covered.
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