When you purchase a homeowners insurance policy, it’s easy to skim over the fine print. But knowing exactly what’s covered is key to protecting your home, especially where risks like hurricanes and flooding loom large. This blog will walk you through the perils covered in homeowners insurance, the risks not covered, and how you can enhance your policy to cover more.
The Basics: What Does a Standard Homeowners Insurance Policy Cover?
The term "perils" refers to specific risks or events your insurance will cover. A standard HO-3 homeowners insurance policy typically protects against many of the most common causes of damage, including:
- Fire and smoke damage: Whether it’s caused by a kitchen mishap or an electrical malfunction, fire damage is one of the key perils covered in homeowners insurance.
- Windstorms and hurricanes: In Florida, wind and hurricane coverage is essential. As a critical part of any standard homeowners policy. this coverage provides vital protection during Florida’s 6-month hurricane season – and beyond.
- Lightning strikes: Florida leads the nation in lightning strikes, making this a frequently filed claim.
- Hail damage: Whether it’s dings to your roof, shattered windows, or damages siding, hail is one of the perils covered in homeowners insurance, ensuring your repairs won’t come out of pocket.
- Theft and vandalism: If your home is broken into or vandalized, the repairs and stolen property are covered under standard policies.
- Damage from plumbing or electrical problems: Sudden and accidental damages caused by a burst pipe, faulty wiring, or short circuits are also included among the perils covered in homeowners insurance.
- Falling objects: Whether it’s a tree limb or debris from high winds, damage from falling objects is also a standard coverage feature.
While these are the most common perils covered in homeowners insurance, your specific policy details may vary. Always review your policy carefully to ensure your home is adequately protected.
What’s Not Covered: The Surprising Gaps in Home Protection
While your standard homeowners insurance policy is robust, it doesn’t cover every potential risk. In Florida, where extreme weather and unique geological risks are common, understanding these gaps is critical. By understanding these exclusions, you can decide if additional coverage is worth the investment to fill the gaps.
Flooding: A Risk for Every Homeowner
Flood damage is not covered under standard homeowners policies. It must be purchased separately, and very often a homeowner’s agent will acquire it through the National Flood Insurance Program (NFIP), managed by FEMA.
The fact flood damage is not automatically covered by home insurance policies surprises many homeowners, especially since flooding isn’t just a coastal problem. As it turns out, more than 20% of NFIP flood-damage claims come from flood zones deemed low- or medium-risk – precisely those areas in which flood insurance is not required.
It's important to understand there is no such thing as zero risk of flooding – it can happen anywhere. Just look at the catastrophic flooding in North Carolina last September due to Hurricane Helene, despite the flood damage occurring hundreds of miles from where the storm came ashore in Florida.
Sinkholes: Florida’s Hidden Threat
Florida is especially vulnerable to sinkholes due to its underlying limestone bedrock, which erodes when water seeps through. This can cause the ground to collapse suddenly. While most standard policies exclude sinkholes, some insurers offer optional sinkhole coverage. It’s worth considering if you live in Florida.
Optional Add-Ons to Cover More Perils
If you want extra peace of mind, consider purchasing additional coverage. The following options can expand the perils covered in homeowners insurance, ensuring you’re protected against a wider range of risks.
Flood Insurance
Even just 1” of floodwater in your home can be devastating, and repairs are costly. A separate flood insurance policy is essential for Florida homeowners, especially those in flood-prone areas.
Sinkhole Coverage
Given Florida’s unique geology, sinkhole coverage is a smart add-on for homeowners who want comprehensive protection.
Water Backup Protection
Damages from sewer backups or overflowing drains aren’t covered in standard policies, but this optional coverage can save you from costly repairs.
Mold or Mildew Coverage
Florida’s humid climate makes mold growth a real concern. Some insurers offer additional protection for damages caused by mold or mildew.
Identity Theft Protection
While this coverage doesn’t prevent identity theft, it provides assistance with restoring your credit and navigating the recovery process after identity fraud. This can be a valuable add-on in today’s digital age.
Ask Your Agent These Questions When Reviewing Your Policy
Once you know what’s covered and what’s not, it’s important to review your policy regularly. These questions can help guide the conversation with your insurance agent:
- Are there any exclusions in my policy I should be aware of?
- What’s my hurricane deductible and how does it work?
- Would you recommend I get a separate flood insurance policy?
- Should I add sinkhole coverage to my policy?
- What other optional coverages would help protect my home better?
Taking a proactive approach by regularly reviewing your insurance policy with your agent ensures your coverage will evolve along with your needs and risk exposure.
Understanding Perils & Your Policy Can Ensure Proper Coverage and Provide Peace of Mind
Knowing the perils covered in homeowners insurance isn’t just about feeling secure – it’s about making sure you’re prepared for the unexpected. From windstorms to fire and beyond, a standard policy can cover many common risks. However, optional add-ons like flood or sinkhole coverage can help fill critical gaps, especially for Florida homeowners.
Take the time to review your policy, ask questions, and consider additional coverage options. Your home is one of your biggest investments – protecting it begins with understanding your insurance.
Find out more by contactiperils covered in homeowners insuranceng your agent. If you’re not yet insured by Edison Insurance Company, you can get a quote online right now.
