What Your Homeowners Insurance Might Not Cover (And What to Do About It)

Surprise—Your Homeowners Insurance Doesn’t Cover Everything
You’ve got homeowners insurance. Great! That means you’re covered for just about anything that could go wrong… right?

Not exactly.

The truth is, while homeowners insurance covers a lot, it doesn’t cover everything—and some of the most common and costly issues fall outside a basic policy. Unfortunately, many people don’t find this out until it’s too late.

So before you assume your policy has your back in every scenario, let’s go over some common things homeowners insurance typically doesn’t cover—and how to make sure you’re protected where it counts.

1. Flood Damage Isn’t Part of the Standard Package
Flooding is one of the most misunderstood gaps in homeowners insurance. A standard policy won’t cover damage from rising water—whether it’s caused by heavy rain, a flash flood, or a river overflowing.

That includes basement flooding, which catches a lot of people off guard.

What you can do: If you live in a flood-prone area—or even if you just want peace of mind—you can purchase separate flood insurance through the National Flood Insurance Program (NFIP) or a private insurer.

2. Earthquakes and Ground Movement? Also Not Covered.
Most standard policies exclude earthquakes, sinkholes, and landslides. If you live somewhere like California, you might already know this. But even homeowners in places like the Midwest or Southeast are sometimes surprised to find they’re not covered.

What you can do: Ask about adding earthquake insurance or a ground movement endorsement to your policy if this is a risk in your area.

3. Sewer Backups and Sump Pump Failures = Big Headaches, Zero Coverage
Sewer or drain backups can be messy, expensive, and… not covered. The same goes for sump pump failure during a storm.

What you can do: You can usually add water backup coverage to your policy for a small extra cost. Totally worth it.

4. High-Value Items May Be Underinsured
Your policy does cover personal belongings, but there are limits—especially for things like:

• Jewelry
• Fine art
• Collectibles
• Electronics

For example, if your $5,000 engagement ring is stolen and your policy only covers $1,500 for jewelry, you’re out the rest.

What you can do: Ask your agent about scheduled personal property coverage. You can specifically list these high-value items to make sure they’re covered up to their actual value.

5. Home-Based Businesses Usually Aren’t Protected
Have a side hustle or run a small business from home? Your homeowners insurance probably won’t cover your business equipment or offer liability protection if something goes wrong.

What you can do: Talk to your broker about home business coverage or a separate business policy. It doesn’t need to be expensive—but it does need to be in place before you need it.

6. General Wear and Tear Is on You
Insurance is meant to cover sudden, unexpected events—not slow deterioration over time. So if your roof starts leaking because it’s 25 years old, or your HVAC dies from age, don’t expect your insurance to pay for it.

Same goes for issues caused by neglect, mold, pests, or poor maintenance.

What you can do: Stay on top of regular upkeep, and if you’re worried about appliances and systems breaking down, consider a home warranty as a supplement.

Not Sure What Your Policy Actually Covers? That’s Normal.

You’re not alone if you haven’t read the fine print in your policy. Many homeowners aren’t sure what’s covered until they’re in the middle of a claim—and that’s not the best time to find out.

That’s where we come in. At National Insurance Brokers, we make it easy to understand your current coverage, spot any gaps, and add protection where it matters most.

Let’s Make Sure You’re Covered—Really Covered

Your home is probably your biggest investment—so let’s make sure it’s properly insured. Whether you need a quick policy review or you’re thinking about adding extra coverage, we’re here to help.

Reach out today for a free, no-pressure review. We’ll help you feel confident that your insurance is ready for whatever life throws your way.