Home insurance protects your home against a wide range of risks, but it doesn’t cover everything! All insurance policies have limits and exclusions. Do you know what they are?
To help you avoid unpleasant surprises, this article provides an overview of the risks that are typically not covered by home insurance, based on a standard comprehensive policy.
Of course, every situation is unique, and many factors can influence your insurance coverage. Additionally, exclusions vary significantly from one insurer to another. To get the full picture, it’s essential to review your insurance policy to clearly understand what is and isn’t covered under your contract.
8 damages that are generally not covered by your home insurance
Wear and Tear
Home insurance is designed to protect against sudden and accidental losses, not against damage due to normal wear and tear or lack of maintenance. This includes rust, corrosion, rot and damage caused by cold, heat, freezing or thawing.
Mold
Mold is usually not covered, as it is considered gradual or preventable damage, often related to ongoing water leaks.
Hidden Defects
Construction defects or defective materials (hidden defects) are excluded from the basic contracts.
Damage Caused by Animals and Insects
Damage caused by pests such as insects or rodents is generally not covered by a standard home insurance policy. These infestations are often due to a general lack of maintenance, but there may be exceptions.
Intentional Damage
Damage caused voluntarily by the owner or a resident is not covered. The insurer may refuse to indemnify you if you intentionally caused the loss or made a false statement to exaggerate the value of the damages.
Vacant Residence
Coverage may be excluded or limited for properties left unoccupied for an extended period (often more than 30 days), particularly for vandalism or property damage.
Home-based Business
Damage resulting from a business activity or professional liability arising from work performed at home is generally not covered by standard home insurance. To ensure you are adequately protected, you must declare your professional activities to your insurer. They can modify your contract by adding an amendment or, if that option is not available, you can take out business insurance to cover your activities. Your insurer may require you to purchase business insurance in order to keep your home insurance policy in force.
Acts of War and Terrorism
Insurance policies exclude damage caused by acts of war, terrorism, or nuclear disasters. Although these situations are unlikely in Quebec, such events carry high risks, hence their exclusion from standard insurance coverage.
Damages That May Be Covered by Adding a Rider
Water Damage
Water damage originating inside the home (such as a broken pipe) is generally covered under basic policies. However, several water-related disasters, such as flooding and sewer backups, are excluded. You can, however, add riders to your policy to cover these specific risks. You can learn more about this subject by reading our article on water damage.
Earthquake
Damage caused by ground movement, such as earthquakes, landslides and subsidence, is excluded from basic home insurance policies. Additional earthquake coverage can be added with an endorsement.
High-value Assets
Coverage for high-value items such as jewelry, furs, works of art, or cash is often limited to a maximum amount in the basic policy. To fully protect these items in the event of theft, you can add a rider to increase the coverage limits.
How to Protect Your Home Despite Exclusions
Add Amendments to Your Contract
Purchase additional coverage to fill the gaps in your standard policy. This allows you to tailor your coverage to specific risks, such as water damage or earthquakes.
Maintain Your Home
Regular maintenance of your home (checking the roof, plumbing, and foundation) is essential. This helps prevent problems caused by neglect, such as wear and tear, mold, or pest infestations, which are excluded from coverage.
Check Your Insurance Policy and The Coverage Amounts
It is essential to review your insurance policy regularly to ensure that your coverage is adequate. Also, verify that the coverage limits specified in your policy are sufficient to protect you in the event of unforeseen circumstances. These limits represent the maximum amount your insurer will pay for a covered claim.
A clear understanding of the limits and exclusions will help you make informed decisions about additional coverage to purchase.
An Insurance Broker to Guide You
At Assurances Multi-Risques, it’s our job to explain what’s included and excluded in your insurance policy. Most importantly, we’ll find the best coverage for you to ensure your home is well protected.
Contact one of our brokers for personalized advice!