What's Not Covered by Standard Home Insurance?
Understanding Standard Home Insurance
Each year, NNINS responds to thousands of homeowners insurance claims across Virginia. From house fires and frozen pipes to the impact of severe seasonal storms, we are committed to providing reliable financial protection and peace of mind for Virginia families. Although each policy is unique, standard homeowners insurance is designed to safeguard you and your family against a wide range of unexpected risks, including ruptured pipes and tree damage, to roof repair and replacement.
What is Not Covered by Standard Home Insurance?
Insurance also is built to be very clear around what it covers and what it does not cover so you can be informed and financially prepared for home damage. Standard homeowners insurance policies typically include several types of coverage. But not all damages are covered by a home insurance policy; common exclusions include floods, earthquakes, landslides, pests and mold, and maybe be listed as exclusions on your policy. Insurance exclusions are perils — or events that cause damage — that are not covered by your policy. Most policies include at least a few exclusions, such as damage caused by flooding or earthquakes. Here are the basics:
What is a Peril in Home Insurance?
A peril refers to a specific event or circumstance that has the potential to cause damage or loss to your property or personal belongings. In insurance terms, a peril is the underlying cause of a loss that may be covered by your policy. Standard homeowners insurance policies outline which perils are covered and policy exclusions outline which perils are not covered.
What is Not Covered by Homeowners Insurance?
These are perils commonly excluded from standard home insurance coverage:
- Flood Losses: Damage resulting from flooding—including heavy rain, overflow of bodies of water, or similar sources
- Earthquakes and Earth Movements: Losses caused by earthquakes, sinkholes, landslides, mudslides, or other movement of earth. The Northern Neck Superior Home Insurance endorsement does include earthquake coverage and quite a few other great coverages.
- Gradual Deterioration and Neglect: Standard policies are intended for sudden and accidental damage. Damage due to wear and tear, deterioration, or lack of maintenance
- Pest Infestation: Issues caused by termites, rodents, insects, or other pests are viewed as maintenance concerns
- Mold: Coverage for mold is generally excluded, except in cases where mold results directly from a covered peril (for example, water from a burst pipe). Mold caused by long-term leaks, ongoing moisture, neglect, or natural flooding
- Animal Liability: Certain dog breeds or individual dogs with a history of aggressive behavior or biting may be excluded or subject to liability coverage limitations
- Acts of Government and War: Damage caused by government action, acts of war, or nuclear hazards
- Home Business Activities: Coverage for business property is limited, and liability related to home-based businesses
- High-value Items: Coverage limits apply to certain valuables such as jewelry, furs, and artwork. To fully insure these items, additional endorsements or riders may be necessary.
Understanding ACV vs. Replacement Cost Coverage
Standard home insurance generally provides coverage for the cost required to repair your home, subtracting the depreciation in value due to age or wear. This is referred to as actual cash value (ACV). This might mean you would have to cover the additional expense to restore your home to its original condition, which is more expensive today.
Replacement cost coverage(opens in a new window) can bridge this gap. This type of coverage can pay the current market price for building materials to repair your home. It can also replace your possessions at today's cost for similar items. It's crucial to discuss replacement cost options with your insurance agent when selecting your policy. Learn more about the difference between ACV coverage and replacement coverage.
Reviewing and Understanding Your Home Insurance Coverage
Once you understand the difference between actual cash value home insurance and replacement home insurance, it's important to determine how much home insurance you need and then to annually review your coverage with your local insurance advisor. Consider any changes to your home, needed repairs and maintenance, especially to big ticket items, like your roof. and access the need to specific coverage for perils that are excluded from your standard home insurance policy.
You may need to add specific endorsements or added coverage for risks unique to your property, such as flood insurance. When you review your policy with your local independent agent use your declaration page as a summary of your policy, a review items such as the named insured, the property address, policy period, coverage limits, deductibles, and premium. It's important to review the entire policy to understand the details of your coverage, exclusions, and limitations.
THE NORTHERN NECK INSURANCE INTEGRITY PROMISE — We pledge to provide straight talk and good counsel from our NNINS Virginia insurance experts through our blog. While we hope you find this to be a helpful source of information, it does not replace the guidance of a licensed insurance professional, nor does it modify the terms of your Northern Neck Insurance policy in any way. All insurance products are governed by the terms in the applicable insurance policy.
