Property insurance is an important part of protecting your home and possessions from damage or loss. While most policies cover a wide range of items, there are some items that are typically excluded from coverage. Knowing what these items are can help you make sure you have the right coverage for your needs.
Types of Coverage Exclusions
The first step in understanding what is excluded from property insurance is to understand the different types of coverage exclusions. Most policies will have three main categories of exclusions: perils, items, and locations. Peril exclusions refer to specific types of events or circumstances that are not covered by the policy, such as floods or earthquakes. Item exclusions refer to specific types of items that are not covered by the policy, such as jewelry or artwork. Location exclusions refer to specific locations where the policy does not provide coverage, such as a vacation home or rental property.
Common Items Excluded From Property Insurance
Once you understand the different types of coverage exclusions, it’s important to know which items are typically excluded from property insurance policies. The most common items excluded from property insurance include:
Jewelry and Other Valuables: Jewelry and other valuables such as watches, coins, antiques, and artworks are often excluded from property insurance policies due to their high value and potential for theft or damage. If you own any valuable items, it’s important to make sure they’re covered by a separate policy or rider on your existing policy.
Business Equipment: Business equipment such as computers, printers, and office furniture is typically not covered by property insurance policies unless it’s specifically listed on the policy. If you own any business equipment that needs to be protected against damage or loss, you should consider purchasing a separate business insurance policy for it.
Watercraft: Watercraft such as boats and jet skis are usually excluded from property insurance policies due to their high risk of theft or damage while in use on water. If you own any watercraft that needs protection against theft or damage while in use on water, you should consider purchasing a separate boat insurance policy for it.
Cash: Cash is typically excluded from property insurance policies due to its high risk of theft and its lack of physical form that can be replaced if damaged or lost. If you need protection against cash losses due to theft or other causes, you should consider purchasing a separate cash-in-transit insurance policy for it.
Additional items that may not be covered include antenna’s, awnings, fences, aluminum carports, screen enclosures, sheds, gazebos, Tiki huts, pergolas, and personal property left outside.
Some of these items like screen enclosures can be included for hurricane coverage with a policy endorsement per a increased premium but this endorsement will usually just cover the cost of the enclosure framing and exclude coverage for the screening.
Fences, when covered would only be paid per actual cash value with the depreciation always non-recoverable. Carpet is another item that is covered for actual cash value only.
There are also policy endorsements that will limit coverage such as a limited water damage that will limit coverage to a max of 10K for a pipe leak. Some will have a roofing actual cash value endorsement that will make depreciation on roof repairs and replacement non-recoverable. They will have mold endorsements limiting mold coverage to 10K.
Insurance companies are very clever in reducing their exposure and most Homeowners even though they will sign a form stating they understand their coverages really do not understand their HO policy coverages.
As an example here is a list of items that are not covered by insurance in the event of hurricane but would be covered during other events. Be sure to check with your specific company for a list of items covered in your specific policy.
(1) Outdoor radio and television antennas or satellite dishes and aerials including their lead in wiring, masts or towers; or
(2) Awnings, aluminum framed screened enclosures, or aluminum framed carports; or
(3) Solar water heating systems including solar panels, and equipment or devices controlling solar water heating systems;
or
(4) Unattached:
(a) Sheds;
(b) Permanently installed outdoor equipment;
(c) Fences;
(d) Fabric windscreens on fences;
(e) Slat houses;
(f) Chickees;
(g) Tiki huts;
(h) Gazebos;
(i) Pergolas; and
(j) Structures where the roof or exterior wall coverings are of thatch, lattice, or slats and similar material.
When shopping for property insurance coverage, it’s important to make sure all your possessions are adequately protected against potential risks like theft and damage. Knowing what items are typically excluded from coverage can help ensure that all your possessions have the right level of protection they need in case something happens to them. If there are any items that aren’t covered by your existing policy but need protection against potential risks like theft and damage, consider purchasing additional riders or separate policies for them so they’re adequately protected in case something happens to them.