What does a standard homeowners policy exclude?
A standard homeowners policy excludes the following:
- Flood: Flood is not covered under a standard homeowners policy. It is covered under a separate policy provided by the Federal government under the National Flood Insurance Program - NFIP through a few private insurance companies. The NFIP policy covers replacement cost coverage for the entire structure of your home and actual cash value coverage for what you possess. However, furniture and possessions stored in basement may have limited coverage. Residents of designated flood zone will need flood insurance. This insurance is available to renters and homeowners.
Some private insurance companies may provide excess flood insurance coverage over the basic policy. You may purchase it from specialized companies or from regular homeowners insurance providers too. This policy will cover damages beyond the limits of the federal program based on replacement cost for structure and actual cash value for possessions. The excess flood insurance can be availed in any part of US - both in high risk zones as well as low risk zones in compliance with the federal program. - Earthquake: Damages due to earthquake too can be covered under a separate policy or as an endorsement to your renters or homeowners policy. Almost all insurance companies offer this policy. The California Earthquake Authority offers this policy in the earthquake prone state of California. However, the policy is offered with high deductible in this state.
- Maintenance damage: Damage caused as a result of lack of maintenance, mold, and infestation of termite or other insects is not covered under this policy.
