Homeowners insurance: Covered or Not?

Q: Does Homeowners insurance cover ANYTHING? Seems all I hear is people getting denied coverage, what a rip-off.


A: Homeowners and property insurance commonly has exclusions. As "all-risk" it generally covers any UNEXPECTED OCCURRENCE as long as it's not excluded.

Let's see.. excluded items:

• Acts of War
• Flood
• Earth movement (earthquake (may be covered under an endorsement))
• Nuclear accidents
• Animals, birds or fish (Pets that is)
• Motor vehicles
• Aircraft except models or hobby aircraft
• Property of roomers unless related or added through endorsement
• Wear and tear
• Inherent vice or latent defect
• Smog, wet or dry rot
• Discharge of pollutants
• Settling or expansion of pavement walls or roof
• Damage caused by vermin, rodents or insects

For property insurance including renters, vacant or 'standard market' property can be written on DP1 or Broad form coverage. This covers named perils:

• Fire and lightning
• Wind Hail Aircraft
• Riot & Civil commotion
• Vehicle damage
• Volcanic eruption
• Explosion
• Smoke
• Vandalism MAY be covered with an endorsement but usually is excluded if property is vacant
• May be endorsed for loss of use/rent

DP-3 Special form for property listed above but generally not vacancies. May be endorsed for replacement cost. Includes named coverages of DP-1 and also includes:

• Vandalism
• Collapse
• Glass coverage
• FD service charges
• Trees and shrubs (for named perils)
• Falling objects
• Weight of Ice & Snow
• Water leakage
• Freezing of plumbing or explosion of steam and hot water systems
• Power surge
• Damage caused by burglars
• May be endorsed for liability and loss of use/rent

HO-# the "Homeowners Policy" provides "All Risks" coverage includes above and any other UNEXPECTED EVENTS that are NOT EXCLUDED related to Owner occupied dwelling:

• Comprehensive policy covers all personal owned property; dwelling AND contents
• Covers personal liability both on and off premises.
• Covers personal property on and off premise
• Loss of use – payment if you cannot live in property
• Separate structures: garages, sheds, pole buildings fences, pools, any stand alone structure on property
• Covers Theft and mysterious disappearance
• Damage to property of others
• First aid to guests
• Typically endorsed for replacement cost

This is a fairly comprehensive list. Keep in mind that policies vary by state, company and type of property. To get a idea of what is covered under your policy, consult your agent or read the policy language.

Ernesto