What does home insurance not cover?

What does home insurance not cover? Well, if you have a named perils home insurance policy, you know exactly what’s covered. Typically, insurance will kick in if damage to your home is by an insured peril, such as fire, lightning, theft, and other major hazards specifically mentioned in your policy.

If damages are due to anything else, you’re on your own. If you have an all-risk policy, on the other hand, there is coverage for all damage, except those your insurer will specifically mention. While comprehensive coverage can be reassuring, there are several hazards that are routinely excluded.

1. Earthquakes

If an earthquake or landslide hits, your standard home insurance won’t respond to damage caused by the earth’s movements. You can, however, add earthquake coverage to your policy, and depending on where you live, it may be a good idea. Research from the Insurance Bureau of Canada finds there’s a 30% chance an earthquake will cause significant damage to Vancouver, Victoria and other parts of southwestern British Columbia in the next 50 years, and a 5% to 15% chance a quake will seriously damage Ottawa, Montreal, Quebec City, and the St. Lawrence Valley and Ottawa Valley regions. But also note that if a quake triggers a gas main to break, which then causes a fire that destroys your home, a standard policy will kick in.

2. Frozen pipes

If your pipes freeze and burst, you have coverage. If you’re vacationing in winter, however, your insurance policy may not cover the water damage. That’s because insurers mandate that during the winter, homeowners can’t leave their homes unattended for more than 4 days at a time without losing eligibility for coverage for burst pipes. That’s waived, however, if you get a responsible person to check on the property every day. It’s also a good idea to have someone check your mailbox, shovel your sidewalk, and clear the snow around your home to prevent potential thieves from entering your home.

3. Flooding

While damage from burst pipes and broken dishwashers is included in standard homeowner’s policies, there are other ways water can damage your home. You can buy additional insurance to cover damage from sewer backups and, depending on whether or not you live in a flood zone, overland water flooding (water from torrential rainfalls and overflowing lakes and rivers). Insurance for tsunami and saltwater damage isn’t available.

To reduce your risk, install a sewer backup valve and waterproofing and weeping tile along the foundation of your home to divert water away.