What Does Homeowners Insurance Not Cover?

• July 22 2024
• |   Insurance

Understanding the specifics of your homeowners insurance is not just a good idea; it’s a crucial step in protecting your investment and achieving peace of mind. The details of policies can vary significantly, and this knowledge can help you avoid unexpected expenses in the event of damage or loss. Armed with this information, you can plan for additional protection if necessary, such as flood or earthquake insurance, which are often not part of standard policies. By delving into the specifics of your insurance, you can make informed decisions and ensure your home and belongings are thoroughly protected.

In most cases, policyholders pay insurance premiums believing they are covered against any kind of damage, including busted water pipes or natural disasters like flooding. However, when you file a homeowners insurance claim and expect to be compensated for any damages, there could be a problem, because certain things are excluded from your homeowner’s insurance policies. These exclusions might be devastating when you need a particular damage to be covered, but you find out it’s not part of the damages your homeowners insurance policy covers. If you or your loved one wants to file a homeowners insurance claim and you need to know what it covers, you can contact us.

Why choose our attorneys at Leverty & Associates Law?

Our attorneys at Leverty & Associates can help you. We are well-experienced lawyers with in-depth knowledge of insurance and personal injury law. Whether you want to file a claim or know what your homeowners insurance policy covers, you can speak with a qualified attorney who will review your options and tell you what we can do to help you.

We handle all our clients’ insurance problems according to their legal needs.

When you choose Leverty & Associates, you’re choosing a team that will prioritize your case and work tirelessly to help you. We’re here to provide the support and assistance you need throughout the process.  Contact us at (775) 322-6636 (Reno) and (702) 507-0201 (Las Vegas) for a free consultation.

What does homeowners insurance not cover?

What is covered by your homeowners insurance company depends on the language of your insurance policy. Homeowners insurance may not cover damage that is caused by:

• Water: Water damage, especially from busted or frozen pipes, can be severe and may not be covered by your homeowners insurance in some limited circumstances.
• Mold: Mold and fungi growth can be prevented. These damages can destroy the value of the home. The mold may not have happened by accident but rather out of neglect, so the carrier excludes it from your policy.
• Earth Movement: This could depend on whether the damage was caused by humans or by the natural movement of the earth. Again, this may depend on the actual language of your insurance policy.
• Flooding: Flooding is one of the most frequent and catastrophic events. The losses from covering flood damages have bankrupted insurance companies in the past. They can’t afford to cover these costs, so they refer you to the National Flood Insurance Program (NFIP).

Insurance companies exclude these damages from the contract to avoid unlimited liabilities or those that are preventable. This is done to maintain a balance between providing coverage and managing risks.

What are the grounds for excluding certain damages from your homeowners insurance policy coverage?

The insurance company will use certain circumstances as reasons for an exclusion. A few of the most notable include:

• Costs: The costs for covering the damage are too extensive, so the insurance company excludes it from the policy.
• Causes: Anything caused by you or a human-made event is excluded. The carrier covers events that occur out of the ordinary, not by someone doing a particular activity.
• Wear and Tear: This is a common exclusion in rental properties. Insurance companies rarely cover damages that are caused by wear and tear. They define this as damage that develops over time from someone living in or using the property. It’s important to note that you would need substantial proof to dispute this exclusion. Most insurance policies do cover the resulting damage from wear and tear, just not the initial wear and tear.

What Are Common Exclusions in a Homeowners Insurance Policy?

The insurance company will not honor all of the claims it receives. The carriers will investigate and decide the cause of the damage. The most common reasons for exclusion are:

• Maintenance: Failing to do maintenance on your property increases the odds of your having more severe damage. Carriers are looking to see if your actions or inactions have caused the problem.
• Force Majeure: Things such as nuclear wars and chemical or biological attacks are not covered.

These are the most common exclusions insurance companies will use to avoid paying the claim. They will say that the damages are not covered under the terms of the policy.

What does home insurance cover?

The most common type of homeowners insurance is the HO-3 policy. It protects your home against all issues except those expressly excluded in the policy. Your personal belongings are covered for damage caused by specific perils like explosions, fire or lightning, theft, riots, or civil commotion.

The types of coverage that can be included in your homeowners insurance policy

Dwelling Coverage

Dwelling coverage, also known as hazard insurance, covers the cost of rebuilding or repairing your home’s physical structure if certain events, like a fire or a fallen tree, damage it.

Other Structures Coverage

This coverage extends beyond your house to include structures attached to your home, such as a garage, deck, or back porch. Detached structures like sheds or fences are usually covered under “other structures coverage.”

Personal Property Coverage

Personal property coverage pays to replace or repair your belongings if they are damaged by a covered event. This includes items like clothing, electronics, jewelry, kitchenware, furniture, rugs, or decorations.

Liability Insurance

Liability insurance covers accidental injuries and property damage to others caused by you or your household members. It also covers your legal defense if someone sues you for injuries or damages.

Medical Payments to Others Coverage

This coverage pays for minor injuries to guests on your property, typically ranging from $1,000 to $5,000. It covers basic medical expenses without legal complications, while more serious claims fall under liability insurance.

Loss of Use/Additional Living Expenses Coverage

If your home becomes uninhabitable due to a covered event, this coverage reimburses you for extra living expenses, such as hotel bills, meals, laundry services, and pet boarding fees.

The positive testimonials we get from our clients show that we deliver results by working hard on every case we accept.

Buying extra insurance coverage for excluded events

You can buy separate earth movement/earthquake insurance for an additional premium if you are concerned about it, as well as flood insurance for water damage. Further coverage of this type is not always cheap, so the question about whether you get the insurance depends on whether the peace of mind of knowing you’re covered is worth the additional premium that is required for the extra coverage.

Exclusions in landlord insurance policies

Sometimes, landlord insurance policies exclude typical wear and tear or moderate deterioration. There are also situations where a landlord reclaims a unit after the previous long-term tenant vacates. The landlord inspects the house, sees that it is in a terrible state of disrepair, and submits a claim to the insurance company, saying, “This damage created by the tenant is vandalism, not normal wear and tear.”

In this scenario, the insurance company often argues that it was a long-term tenant. Therefore, all damage to the property falls under the “normal wear and tear” exclusion, regardless of how extraordinary the damage may be. It’s essential to consult an attorney who is knowledgeable about homeowners policies and Nevada case law to see whether the insurance company is correct in its interpretation of the policy’s exclusion language.

Does the insurance company ever change its position on a denied claim?

When a claimant acts on their own behalf, the insurance company usually does not reverse itself on a decision to reject a claim. Sometimes, a claimant needs to speak with and hire an experienced Nevada insurance lawyer to collect on a legitimate claim. Even if it has to go to trial, insurance companies must occasionally be forced to pay on a valid claim.

Do you need help with your homeowners insurance policy?

At Leverty & Associates, we will make your case our top priority and invest our skills, knowledge, and expertise to ensure your successful representation. If you need a team of reliable attorneys to help you, contact us today to learn more about our services and how we can assist you.

Contact Leverty & Associates at (775) 322-6636 (Reno) or (702) 507-0201 (Las Vegas) if you believe your insurance claim was unfairly denied. You will speak with a qualified attorney with experience handling these cases. They will explain your options and help you decide the way forward.