A home insurance policy does not provide unlimited coverage, so you should take time to understand where any potential gaps in coverage may be apparent.  Now we will discuss further limitations of coverage on the home, condo, or renters policy.

As will be discussed in more detail in another article the home policy (Condo and Renters policy have different coverage parts) and what is covered is broken down into something called  ”Sections”.  Section 1 for the home policy has 4 distinct coverage parts:

We will focus specifically on Coverage C-Personal property limitations of coverage. 

Certain types of personal property are either not covered, or they have limitations on the maximum amount of money that will be paid for those items in the event of a loss for instance:

Computers, especially lap top computers or business equipment that you keep in your home.

Antique furniture and Fine Arts.

Theft of jewelry, watches, precious and semi-precious stones and furs, including any article containing fur which represents its principal value. 

Theft of silverware, silver-plated ware, goldware, gold-plated ware, platinumware, platinum-plated ware and pewterware.

Theft of guns.

Theft of sports cards or other collectible cards.

Theft of hand tools (not including lawn and garden tools and equipment).

Money, bank notes, bullion, coins and medals and other numismatic property and precious metals including platinum, gold and silver, but not goldware or silverware.  

Securities, accounts, deeds, evidence of debt, letters of credit, notes other than bank notes, passports, manuscripts, tickets, stamps and other philatelic property. This dollar limit applies to these categories regardless of the medium (such aspaper or computer software) on which the material exists. The limit includes the cost to research, replace or restore the information from the lost or damaged material.

This is a brief list of common personal property items that have limited or no coverage.  Certain companies may have endorsement riders that can be attached to the policy that will provide a limited amount of coverage, but your deductible would apply.  Or you can schedule a individual item on something called an inland marine property schedule.

Always read your individual policy for complete detail.  If you are a client of Pathway Insurance, please contact us directly to discuss your individual circumstances.  Or if you would like a free analysis you may contact me directly at jack@pathwayinsurance.net

Remember the worst possible time to learn you do not have the correct amount of coverage is after a claim occurs.

As is true with car insurance EXCLUSIONS ,  what is covered on your Home insurance policy can vary by insurance company.  Take time to read what is covered and what is not. 

Limitations of coverage will once again be listed in the EXCLUSIONS section of your home policy. 

Let’s review a few common EXCLUSIONS on a typical home, condo, or renters policy.  (Not all Exclusions are listed) 

Earthquake or other earth movement including loss caused by, contributed to or aggravated by landslide; mine subsidence; mudflow, earth sinking, rising or shifting. We do cover direct loss that follows caused by fire, explosion or breakage of glass.

Earthquake coverage can be added with most companies for an additional premium.

Water damage, meaning: (a) flood, surface water, waves, tidal water or overflow of a body of water. We do not cover spray from any of these, whether or not driven by wind; (b) Water or water-borne material which backs up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment; or (c)  Water or water-borne material below the surface of the ground. This includes water which exerts pressure on or flows, seeps or leaks through any part of a building or other structure, sidewalk, driveway, foundation or swimming pool; caused by or resulting from human or animal forces or any act of nature. We do cover direct loss that follows, caused by theft, fire or explosion.

It may be possible to add a water back up endorsement to your home, condo, or renters policy for an additional premium.  A separate flood policy can be purchased to cover what your home policy excludes.

Vandalism or malicious mischief, including intentionally set fires, if the dwelling has been vacant for more than 30 consecutive days immediately preceding the loss. A building under construction is not considered vacant.

If your home is vacant more than 30 days you can purchase a vacant home policy, click here.

Neglect of an insured person to use all reasonable means to protect covered property at and after the time of loss.

Example:  If a lightning bolt puts a big hole in your roof and you take no reasonable actions to prevent rain from entering your home which in turn causes additional damage to your home, the insurance company can refuse to pay for the damages.

(a) wear and tear, marring, or scratching, deterioration; (b) inherent vice, latent defect, mechanical breakdown; (c) smog, rust or other corrosion, mold, mildew or fungus, wet or dry rot; (d)smoke from agricultural smudging or industrial operations; (e) discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by a Peril We Insure Against under Personal Property Coverage of this policy. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed; (f) settling, shrinkage, bulging or expansion, including resultant cracking, of pavements, patios, foundations, walls, floors, roofs or ceilings; (g) birds, vermin, rodents or insects; or (h)animals owned or kept by an insured person. If, because of any of these, water escapes from a plumbing, heating, automatic fire protection sprinkler or air conditioning system domestic appliance, we cover loss caused by the water. We also cover the cost of tearing out and replacing any part of the covered building necessary to repair the system or appliance. We do not cover loss to the system or appliance from which the water escapes. 

Your home insurance policy does not cover maintenance issues, wear and tear, mechanical breakdown.  For instance, if your foundation cracks because of a lack of moisture that is not something that your homeowners insurance policy would extend coverage for.  (If your foundation cracks due to an earthquake and you have earthquake coverage, coverage may apply)

Collapse, other than as provided in Additional Coverages 8. - We cover risk of direct physical loss to covered property involving collapse of a building or any part of a building caused only by one or more of the following: (a) Perils Insured Against in Coverage C-Personal Property. These perils apply to covered building and personal property for loss insured by this Additional Coverage; (b) hidden decay; (c) hidden insect or vermin damage; (d)weight of contents, equipment, animals or people; (e) weight of rain which collects on a roof; (f) use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling or renovation. 

The limitations of coverage is quite extensive for home insurance, you must read your policy carefully to determine if there are any possible gaps in coverage.  Insurance companies will not allow you to backdate or purchase coverage after the claim happens.  You must do that before the claim happens.