10 Surprising Things Your Homeowner's Insurance Policy May Not Cover

When you purchase a homeowner's insurance policy, it's reasonable to believe that all of your property is then protected against loss or damages. What many homeowners don't realize, often until it's too late, is that there are quite a few things that standard policies rarely cover. Before you sign the papers on that new policy, make sure that you understand exactly what is and what is not covered. The last thing you want to do is file a claim, only to discover in your moment of need that your interests are not protected. These are 10 of the things that your policy may not cover, all of which may come as a surprise.

• Flooding – Unless you've purchased a rider specifically furnishing flood coverage, you may be shocked to learn that flooding isn't covered under your standard homeowner's policy. There are a variety of exclusions that allow your insurance company not to pay for flood damages to your home. Whether you live in a known flood plain or not, it's wise to make sure that your policy covers flooding before you need to file a claim that won't be honored.
• Earthquakes – While some areas of the United States experience more earthquakes than others, any home near a fault line has the potential to be damaged by an unexpected earthquake. Unless you live in California and have obtained specific coverage through the California Earthquake Authority, most homeowner's insurance policies won't cover damages from earthquakes and other movements of the earth. That includes sinkholes too, so make sure you review your policy carefully.
• Trampolines – While purchasing a trampoline might be the fulfillment of your kids' dreams, it's also an assumption of liability in the eyes of most insurance companies. Any injuries sustained as a result of trampoline use on your property will most likely not be covered. Because the Consumer Product Safety Commission estimates that the number of trampoline-related injuries has tripled in the last 10 years, most companies consider these contraptions too high-risk for coverage.
• Unfenced Swimming Pools – A swimming pool can be a relaxing oasis. It's also considered an “attractive nuisance” by insurance companies. Most policies won't cover injuries or drowning in a pool on your property, especially if it's not fenced securely. That means that even if the child of a neighbor sneaks into your pool without permission and sustains an injury, your insurance company probably won't cover the claim.
• Dogs – It stands to reason that a dog on your property would be covered by your homeowner's insurance if he bites or otherwise injures a visitor, but that's not always the case. Many policies won't cover breeds that are known to be aggressive, or will require you to carry a special rider in order to obtain coverage.
• Mold – Unless mold growth is “sudden and accidental,” there's a good chance that your insurance company won't cover any damages it causes to your home. Make sure that your policy covers mold growth, and that you're taking active steps to prevent it from growing in the first place.
• Termite Damage – A colony of termites can do significant structural damage to your home. The damage can be devastating, and often isn't covered under standard policies due to the fact that structural damage can be avoided with early intervention and frequent inspections. It's best to plan an annual inspection to exclude the possibility of termite damage, because you will be unlikely to recover funds if your home sustains any.
• Cash – If you're storing your life savings in the mattress or under a floorboard, don't expect your insurance company to reimburse you if your house is destroyed. Most standard policies cover a maximum of $1,000 in lost or stolen cash, so it's best to keep your money securely stored in the bank.
• Construction Damages – That new addition to your home or your most recent remodeling project may seem like an exciting time, but it won't be quite so much fun if your home is damaged during the project. Homeowners who are improving their properties are encouraged to research builder's risk policies and make sure that their contractor has full insurance, because your homeowner's policy probably won't bail you out if he causes damage to your property.
• Sewer Backup – The idea of a sewer backing up into your home is a distressing and disgusting one. Should it happen to you, it can also be an extremely expensive experience. That's because your basic homeowner's policy probably doesn't cover the damages. There are riders available for extra coverage, but you'll have to specifically inquire about them in most cases before they'll be added to your policy.

Resources:
http://www.nerdwallet.com/blog/insurance/2013/09/27/home-insurance-exclu...
http://articles.sun-sentinel.com/2011-09-02/business/fl-insurance-policy...