Home » Things Homeowners Insurance Doesn’t Cover

Things Homeowners Insurance Doesn’t Cover

Things Homeowners Insurance Doesn't Cover-Austin Real Estate-Cedar Park Homes-Leander Homes-Georgetown Real Estate

With severe weather season on the horizon, now is an excellent time to look at your homeowner’s insurance coverage. Some insurance companies will offer additional coverage for a fee, while others will not. If your insurance doesn’t cover something you need, shop around for a new company, or start an emergency savings account. Check your existing homeowners insurance policy for the following limitations or omissions that could carry heavy out of pocket expenses.

“Acts of God”

An “Act of God” is an event not caused or controlled by humans, such as tornadoes, floods, or other damage caused by severe weather.  Standard home insurance policies may have limits or exemptions for “Acts of God” coverage.  Insurance companies won’t advertise their exemptions. It’s up to the homeowners to know the questions to ask.  Homeowners typically have to pay for additional coverage such as flood protection or tornado insurance.  Always ask what is not covered to ensure that you will be sufficiently protected.  Deductibles are another item that insurance companies will not advertise.  The deduction for additional coverages might be higher than that of basic coverage.  

Pest Infestation

When they hear pest infestation, most folks think of mice and termites, but many other creatures could make themselves cozy in a chimney, awning, porch, or crawlspace.  An infestation could include a hornet’s nest right outside the backdoor, squirrels or birds looking for a safe place to roost, opossums under a deck. The list is longer than one would initially think.  Regardless of the type of unwelcome houseguests, the situation could result in extensive damage and expensive repairs.  Many insurance companies will consider a pest infestation as negligence on the homeowner’s part and will not cover the cost of repairs. 


Homeowner insurance policies are designed to cover the cost of rebuilding or renovating a house in the case of fire or a flood due to a burst pipe.  However, there will always be caveats that homeowners need to be aware of before an event occurs.  The price of rebuilding a home will change over time which could affect an exact replacement.  Most insurance policies will only cover the original cost of rebuilding a home rather than its actual value at the time of an incident.  Homeowner upgrades will typically not be replaced if the insurance policy is not updated to reflect the changes.  

Data shows that nearly 60 percent of homes in the U.S. are underinsured.  As a homeowner, it is your responsibility to know exactly what is and is not covered through your insurance.  Ask the right questions upfront and thoroughly read your policy so that you know what to expect if the unexpected should occur.

Are you looking to sell or have questions about Austin area homes, neighborhoods, or real estate? Contact Prism Realty, and we’ll be happy to help. Reach out to us anytime at info@prismrp.com or 512-676-5842. 

Curious about the value of your home?  Click here for a complimentary market analysis.