What Homeowners Don’t Realize Their Insurance Doesn’t Cover

Home insurance feels like a safety net — until you actually need it and discover there are holes. Big ones.

Most homeowners don’t realize their standard policy won’t cover some of the most common (and expensive) disasters. Flooding, for example, isn’t included in the typical home insurance package. A single storm can cost tens of thousands in damage, and unless you have separate flood coverage, you’re on your own financially.

Earth movement is another common blind spot. Sinkholes, shifting soil, some types of foundation damage — all excluded. Same with sewer or drain backups, unless you’ve added an endorsement.

Even personal property has limits people rarely read. Expensive jewelry, collectibles, high-end electronics — all often capped at surprisingly low amounts unless you schedule items individually.

Insurance isn’t trying to trick you; it’s simply written in a way that assumes you’ll add coverage based on your risks. But most homeowners don’t revisit their policy after closing on the house.

The best thing you can do? Review once a year. Five minutes can save you from thousands in uncovered losses later.

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