Homeowners Insurance Coverage: Are You Truly Covered?

One of the biggest purchases you make is your home. It is an expensive item to own, and its protection is quite important if you want to maintain financial freedom.  After all, if something happens to your home, it can be quite expensive to fix.  Insurance is purchased to help you afford unexpected problems, and this includes homeowners insurance.  However, it is important to realize that not every situation is always covered by homeowners insurance.

Before you consider that your entire home, and everything in it is covered, it is important to double check what is actually covered by your policy.  You may need to purchase additional insurance coverage if your homeowners policy is lacking.  Here are some of the more common items not covered by some homeowners insurance policies:


One of the most common omissions from a homeowners insurance policy is coverage for flooding.  Most people do not have this coverage if they do not live in an area that is recognized as flood prone.  However, you never know when a flood will come, whether from an unexpected event, or from groundwater.  Without flood insurance, you would be on the hook for any damages to your home as a result.

Extreme Weather

In some cases, damage by extreme weather may not be covered.  If you live in an area that is prone to tornadoes, damage from these types of weather may not be covered.  The same is true of areas that are prone to hurricanes.  Some policies cover damage from tornadoes and high winds, but these are not usually policies in areas where these types of extreme weather are common.  Check your policy or talk to your agent about what is covered.

Earthquakes and Other Earth Movements

homeowners insuracne coverage

Make sure your homeowners insurance coverage protects you from all potential damage in your area.

For the most part, basic homeowners policies do not include coverage for damage that is the result of an earthquake.  Additionally, you are likely to find that sinkholes and landslides are not covered, either.  If your home sustains damage from these natural disasters, it probably won’t be covered.  You will need extra coverage for such things, if it isn’t included in your homeowners policy.

Business Related Issues

If you run a business out of your home, you should realize that damage to business equipment may not be completely covered by your homeowners policy.  Additionally, if you have business meetings at your home office, liability issues may also arise if someone is hurt on your property during a business transaction.  Make sure you understand exactly what is covered in terms of your home office.

Some Valuables

While some of your possessions are covered by homeowners or renters insurance when it comes to theft, or to damage, if you have especially valuable items, the coverage may be insufficient.  Find out whether there is a limit on the coverage.  If you have fine artwork, expensive jewelry, valuable collectibles or high-end electronics, your homeowners insurance might not sufficiently cover their loss.  You can purchase insurance for these valuable items, to ensure that they are properly insured.

Bottom Line

Don’t assume that you have the coverage you need with your homeowners insurance policy.  Check through the policy and consult with your insurance agent if you have questions. If you detect a gap in coverage, be sure to fill it.  Make sure your homeowners insurance coverage is truly there to protect you when you need it!

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Published or updated December 4, 2012.


  1. A good agent demonstrates their value by asking questions about these risks. He/She can help you make these decisions and discuss the risks.

  2. Jenna, Adaptu Community Manager says:

    Definitely stuff to consider when purchasing your new home. Location, location, location! (And the ability to insurance at said location).

  3. Great thoughts about insurance many of us don’t have. I’m currently reevaluating the insurance I have, and think I will add earthquake coverage because that’s certainly possible where I live. Thanks for the article!

  4. I haven’t added Earthquake insurance because of its cost and it doesn’t cover as much as what people may think. Thankfully I am reminded every year so I have the opportunity if I change my mind.

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