Homeowner Insurance Exclusions

Although Insurance is designed to provide protection as a result of a loss, there are also situations and circumstances that the Insurance policy does not address. The Insurance Industry isn't committed to provide coverage for every possible scenario or cause of losses. The policies are not designed to be maintenance contracts, but for the purpose of covering accidental losses or losses that could not be avoided. There are also some types of losses that are too catastrophic for the Insurance Industry to cover in the typical Homeowners policies.

The following are typical Exclusions in most Homeowners Policies:

• Mold and Water Damage - A few years ago, if a pipe burst in your home, your insurer would probably pay for the damage, including mold remediation. Now you may not be covered for the mold. A huge increase in mold-related claims in Texas, California, Florida, Nevada and Arizona has many insurers scrambling to eliminate or at least reduce their exposure. Regulators in many states are now allowing insurers to cap their mold coverage or exclude it from homeowners policies altogether. Many insurers are limiting how much they’ll cover for water damage, as well.
  
  
• War and Nuclear Accidents - If your home is burned down in a riot or other civil commotion, your Homeowners Policy will probably cover the damages. If your home is damaged by an invading army or is irradiated by a nearby power plant, however, you’re not covered.
  
  
• Flood- Flood is not covered under homeowners insurance policies. The National Flood Insurance Program, run by the Federal Emergency Management Agency, offers coverage.
  
  
• Earthquake - Earthquake coverage is not covered under standard homeowners insurance. However, if you live in an area that is not known to be in an earthquake zone where fault lines are, you can purchase the option in your homeowners policy.
  
  
• Neglect - If a tree topples over in a windstorm and crushes your house, you would be covered. If your home collapses because of a termite infestation, you are probably not. Insurers expect you to take care of your home and deal with any maintenance issues on your own. Insurance generally covers sudden and unexpected losses -- not losses from termites, rodent infestations or a water leak you never quite got around to fixing. You are expected to detect the problem and prevent the situation from getting out of control. If you don’t any damage done typically won’t be covered by your insurer.
  
  
• Intentional Damage - If your ex-boyfriend sets fire to your home, you would probably be covered. If the fire is started by a member of your household, such as your son or daughter or an estranged spouse, however, you may not be. Intentional damage by an insured person -- or by the person’s spouse, children or relatives living in the house -- typically isn’t covered. Estranged spouses often come into a gray area. Although they may not live in the home, they may be listed on the policy or the property deed and be considered to have an insurable interest in the home.

• Animals - Although we love our pets, there often can be a risk of them injuring a delivery man, or neighbor child. They can also cause damage to neighbors' property. If you own a toothless Chihuahua, your insurer probably doesn’t care. However, if you own a pit bull or a Rottweiler, and you may find your insurance gets more expensive if you can get the insurer to cover any damages done by your animal or injuries they may cause.
  
  Dog bites cost insurers about $310 million a year, and an increasing number of companies have a blacklist of breeds they won’t accept or charge more to cover. Pit bulls, which lead the Centers for Disease Control list of deadly breeds, are particularly unwelcome. Other troublesome breeds include the German shepherds, Rottweiler, Wolf Hybrid, Huskie, Malamute and Doberman.
  
  If your dog has ever bitten anyone, regardless of its breed, you’re probably going to have trouble getting coverage as well -- particularly if it was an unprovoked attack. Each insurer has different policies, though, so you may be able to find affordable coverage if you shop around. You also can ask the insurer to exclude your dog, meaning that you’ll pay for any damage it does.
  
  
• Lead Paint- This is another item being excluded in older homes. The paint chips that have caused serious injuries and growth deficiencies in children is an increasing concern. If you live in an older home, you may be asked to sign an exclusion form documenting that if an injury occurs, the insurer is not liable as a result of Lead Paint Poisoning.
  
  
• Home Day Care Center -This exclusion is used in most Homeowners when there is a possibility that the home is being used for Day Care and the insured is not a licensed day care provider. Child abuse is of utmost concern. If you are operating a licensed Day Care center in your home, you may be able to purchase coverage from your carrier, in the event any of the children are hurt while in your care, however no policy will cover you for Child Abuse or Sexual Molestation.

Most Insurance Companies will not delete exclusions however there are exceptions. If you want Earthquake coverage, you may be able to purchase the additional coverage.

You should review your Homeowners Policy in the section marked Exclusions to see if your policy has other exclusions indicated. It is important to review your policy carefully before the loss occurs that you thought would be covered.