8 Surprising Things Your Home Insurance Won’t Cover – Part Two

Last week I posted part one of this article, which I found at Kiplinger. Alexandra Twin wrote it, with contributions from Rachael Green, and it was posted on 9/10/26.  As I mentioned, for many, our homes are our most valuable asset, so
understanding how your homeowner’s insurance helps protect that asset (or not) matters. So here are numbers five through eight, closing with information on what your insurance generally will cover.

 

5. Expensive jewelry and other valuables aren’t fully covered

 

While your personal property is usually covered by home insurance, home insurance will typically have limits that cap the maximum payout for certain types of property. For particularly valuable possessions such as jewelry, art and collectibles,
that coverage limit won’t reflect the full value of the items. For example, if your policy has a limit of $1,500 for jewelry, that’s the maximum amount you could receive from insurance if your jewelry is stolen or damaged — even if you can prove your jewelry
collection was worth more than that. To ensure these valuable items for their full value, you’ll need to have them professionally appraised and pay extra to add a personal property endorsement or rider to your insurance policy. Rates can vary between providers,
but you can expect to pay about 1% to 2% of your item’s value, according to Geico. For example, a $5,000 engagement ring could cost about $50 annually to insure.

 

6. Home office equipment isn’t fully covered

 

Do you work from home? A typical home insurance policy provides only $2,500 of coverage for business equipment, the Insurance Information Institute reports. Depending on your business, you might have equipment or inventory worth far more
than that. Fortunately, for as little as $20 a year, you could add a home business endorsement or rider that doubles your policy’s coverage from $2,500 to $5,000.

 

7. Pest damage is your responsibility

 

Whether it’s termites burrowing through your framing or rodents chewing up your wiring, most pest damage isn’t actually covered by home insurance. You’ll be liable to pay for repairing the damage and removing the offending pest. The reason:
Infestations are typically seen as preventable through proper home maintenance. Any damage caused is deemed the result of negligence or poor maintenance. There are some exceptions to this exclusion. For example, large animals such as deer or bears that smash
your fence or break into your home would likely be covered. Some insurers will also step in for a “covered peril” that results from pest damage. Say the rats that chewed through your wiring started an electrical fire. Your insurer would likely cover any fire-related
damage. But you’d still be on the hook for any rodent-related damage.

 

8. Recent home upgrades might not be covered

 

If you’ve done any remodeling or modifications to your home, like adding a wheelchair ramp or finishing your basement, it might not be covered by your current home insurance policy. Your policy covers your home as it was when you enrolled.
If you’ve made home upgrades since then, especially ones that would be expensive to replace or repair, you need to contact your insurer to make sure you have enough coverage to pay for them. 4 types of damage home insurance will cover if home insurance won’t
kick in for any of the eight types of damage above, what is it good for? Fortunately, there are still plenty of situations in which your coverage will apply. The key is to make sure you know which types of disasters are included and how the coverage you have
works. To understand the nuances of your coverage, take a look at some things that are included in most standard home insurance policies.

 

1. Some natural disasters are covered by home insurance

Most policies cover damage to your home from natural disasters such as tornados, hurricanes, lightning, snowstorms and fires. They also cover damage to detached structures located on your property, such as a shed, garage, fence or gazebo.

 

2. The contents of your home are (mostly) protected

Home insurance policies typically cover the contents of your home from damage or theft. In most cases, this coverage comes in the form of a maximum dollar amount that your insurer will pay for lost or damaged personal property. But keep
in mind, you need to provide evidence of your belongings to your insurance provider when you file a claim. If you can’t prove you owned an item or you can’t prove the actual value of it, insurance might not be willing to pay out.

Pro tip: Take pictures of your possessions and store those photos in the cloud so that you’re prepared to make a claim.

 

3. Short-term living expenses are often covered

If a covered disaster makes your home unlivable, standard home insurance will usually cover the temporary living expenses you incur while waiting for your home to be repaired or rebuilt. This coverage pays for short-term living expenses,
such as hotel bills, meals and other expenses listed in your policy, while your home is being rebuilt after a disaster. Doublecheck the terms of your policy, though. Some plans will only cover these expenses for a certain time frame or up to a certain dollar
amount. Insurers also vary on how this benefit is paid out. Some might send you a debit card in the mail right away. Others might have to pay for things out of pocket and submit the receipts for reimbursement.

 

4. Home insurance protects you against lawsuits for injury or property damage

Standard home insurance provides liability protection against lawsuits for bodily injury or property damage that you or your family members cause to other people when they’re on your property. This protection pays for attorney fees and
any court-ordered payouts to the injured party up to your policy’s limit.

 

However, it’s important to re-evaluate your liability coverage periodically to make sure it’s enough. As your net worth grows, the maximum liability coverage your home insurance will offer might not be enough to fully protect your finances.
When that happens, you can look into umbrella insurance to fill in the gaps. Umbrella insurance provides additional liability coverage to make sure your finances will be fully shielded in any lawsuit. As your net worth grows, deciding how much liability coverage
you need can become part of a larger financial planning conversation. A financial adviser can help you assess your assets, identify potential gaps in your financial plan and consider strategies to help protect the wealth you’ve built.”

 

I hope you found this two-part post informative. It is not often you see an article that provides so much information in one place. Of course, don’t take this article as gospel; if you have doubts or questions, call your agent to gain clarity.
Meanwhile, if all this talk about protecting your hard-earned assets has you thinking about your will or estate plan, please give me a call. We can meet to discuss how best to protect those assets and your loved ones. Please call me at 513-399-7526 or visit
my website, www.davidlefton.com, for more information.

 

Source: Kiplinger on 9/10/26. Alexandra Twin author, contributions from Rachael Green