Standard homeowners insurance policies (HO-3) provide robust protection against fire, windstorms, and theft. However, many policyholders mistakenly assume their policy covers all natural disasters and property damage.
1. Flood Damage Exclusions
Standard homeowners insurance excludes damage caused by surface water, rising rivers, or storm surges. Flood insurance must be secured separately via the National Flood Insurance Program (NFIP) or private flood insurers.
2. Sewer and Drain Backup
If water backs up through municipal sewers or drain lines into your basement, standard policies will not cover cleanup or repairs unless you have purchased an optional Water Backup and Sump Pump Overflow endorsement.
3. Ordinance or Law Coverage
Rebuilding an older home after a major loss often requires upgrading structural elements to current building codes. Ordinance or Law endorsements cover the added cost of mandated updates.
Performing an annual home inventory and reviewing policy endorsements ensures your property is fully protected against unexpected loss events.