What does a standard homeowners policy exclude?

by joven222 » Tue Jan 13, 2009 04:54 pm

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.


I bought a house and I am just curious if what is the most practical coverage I can buy as a property insurance. Do i really need to have fire, earthquake flood, and any other? Or there are something that you can recommend that is practical enough to save me money.


Total Comments: 15

Posted: Mon Dec 10, 2012 07:01 am Post Subject:

theft if it involves a family member

Someone living in the same household? Or some other relative? It could certainly make a difference. Someone living in the same household could be [construed as] an additional insured, and you cannot recover in such a case -- it would be like saying to the insurance company, "I stole my Rolex watch from my dresser drawer. Please pay the claim." They wouldn't.

Posted: Sat Jan 19, 2013 01:02 am Post Subject: stolen guns

We live in north carolina have homeowners with farm burea i was at my parents house overnite an somone broke in my suv an stole guns out of the back would homeowners cover that because i dont think my auto insurance will

Posted: Sat Jan 19, 2013 03:07 am Post Subject:

You have to read your policy to see what the limitation is on guns/rifles. Sometimes the loss is limited to as little as $200 -$500, which is pretty much meaningless unless the gun was for paintball fun. The loss should be covered, as long as there is a police report of the crime, up to the limits of the policy.

A word to the wise on this. Guns, cameras, computers, jewelry, fine art, china and crystal . . . these are all items which have only limited protection in a standard homeowner's policy. If your total potential loss in any one or more of these areas is significantly greater than $2000, you should consider adding a PERSONAL ARTICLES FLOATER or obtaining an INLAND MARINE policy with the higher limits you require. In exchange for your premiums, you will obtain coverage that also exceeds most of the exclusion in your HO policy, such as earth movement, flood, etc.

Posted: Fri Apr 19, 2013 04:39 am Post Subject: knee injury and broken bones in leg.

Approximately three weeks ago, I was riding my neighbor's mini- dirt bike at a high rate of speed, illegally down a residential street. I took the turn on the street too fast and I over-corrected and ended up in a bad spill in another neighbor's yard. My question is, "Can, I file a claim on the neighbor's homeowners Insurance, that owns the mini-dirt bike, even though I didn't have the accident in that neighbor's yard.

Posted: Fri Apr 19, 2013 08:23 am Post Subject:

Reckless in Vegas, homeowners insurance does not cover losses caused by a dirt bike accident so no, you can't file a claim against his homeowner's policy. You would need to file a claim(or he would) against the insurance policy covering the bike, which is usually a motorcylce policy but may also be an ATV, ORV, or Motorcross policy, depending on how the insurance company covers off-road motorcycles. DId you want to file a claim for injuries you sustained, damage to the bike, or damage to the neighbor's property?

If the bike is insured, you can file a claim for your injuries under the Medical Payments coverage, up to the limits of liability and usually coordinated with your health insurance. Damage to the bike would be covered under Collision coverage, but you may want to get an estimate for the cost of repairs before calling the insurance company or filing the claim because it may be cheaper to repair it yourself if it's less than the deductible and higher premium caused by the claim. However, since you admitted to be driving the bike illegally, recklessly, and negligently, the company may deny the claim. Most policies exclude losses occurring during unlawful acts or transportation.

For damage to the neighbor's property, they would have to file a claim on theirs and their insurance company will subrogate against the bike's insurance company for a property damage liability claim. The homeowner can sue you directly, in which case the bike policy should cover you for damages you're found legally liable to pay in court (or at settlement), up to the limits of the policy, plus legal fees and for lost wages while in court. Again, all assuming you had permission to drive the bike and recognizing that you admitted to driving the bike illegally, recklessly, and negligently the company may deny the claim.

If your friend doesn't have insurance or collision on the bike you're out of luck and unfortunately it's not legally required unless it's modified & licensed for road use, so many dirt bike owners don't have it.. If you have health insurance it should cover your injuries, but a homeowner's policy doesn't cover losses from dirt bike accidents. If you have any other questions you can PM or email me directly, or reply of course. Hope that answers your question.

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