Five Things Not Covered On Your Home Insurance Policy

As a homeowner, it’s important to understand what may not be covered under your Home Insurance Policy. Many people assume they are covered for situations, when in fact, they are not. Also, let’s face it, how many of us read our insurance policy?

For most Home Insurance Policies in Canada, here is a synopsis of what is likely not covered. To be sure, please check your policy or call your Insurance Broker.

Earthquake / Flood

Earthquakes are considered a catastrophic event and are excluded from your policy along with earth movement, which includes earth shifting and sinkholes. While these occurrences are not typical to Canada, some companies do offer earthquake coverage for an additional premium, and the deductible is typically quite high.

Flood or overland water is excluded from your policy. However, most companies do offer coverage depending on where you live. If you live close to a lake, river or floodplain, it will be more difficult to qualify for this coverage. If you do purchase flood coverage, it still does not include any coverage for groundwater that seeps through your basement floor or walls.

Freezing of Indoor Plumbing

If your plumbing freezes as a result of you being away and you did not have someone checking your home every four days, most policies would not cover the cost of repairs. Most homeowners are not aware that being on vacation or otherwise away from their home during the winter months requires that someone visit your home to check your furnace and ensure water pipes are not frozen. If you are away for less than four days, the exclusion does not apply.

Damage Caused by Birds, Insects or Pests

Generally, damage caused by “pests” is not covered by a standard home insurance policy. The removal of any of these animals is also not covered. Since infestations and the resulting damage are usually considered matters of home maintenance, the responsibility falls on the homeowner to pay for repairs or pest control measures.

A Vacant Home

If you leave your home for 30 days with no intention to return to it (for example, you bought a new house and put your old one up for sale), there is no coverage after 30 days. Most insurance companies will offer limited coverage; however, you must notify your insurance provider before leaving it vacant. Insurance companies view vacant homes as ideal targets for arsonists, vandals and thieves as no one is there to check on the house.

Mold

If you suddenly find a mold problem in your home, forget calling your insurance company. The development of mold means, according to your insurance company, that you were not maintaining your home correctly. You will have to pay for any repairs yourself, regardless of how the mold developed.