THURSDAY, JANUARY 23, 2020
 You may think that your home insurance protects your home and property, but that's only partially true. While it does cover the value of your home and what's inside of it, it doesn't apply to everything that can do damage. Here are some of the most common exclusions you should look for.
Floods
Overflowing lakes and rivers, storm surge, bad drainage during rain, and other flooding are almost never covered by standard home insurance policies. You’ll generally need a separate flood insurance policy.
The reason for this is that flooding has a much different risk profile than other types of home claims. Because of this, most flood insurance policies are federally-backed under the National Flood Insurance Program.
Earthquakes
Like floods, earthquakes are unique events that can cause major damage in concentrated areas. Many home insurance policies exclude earthquakes, especially in earthquake-prone areas. See if you can add on an earthquake option to your policy or purchase a separate policy.
Neglect and Abandonment
Your insurance company expects you to take reasonable steps to prevent damage to your home. It may cover a pipe that burst while you were at work but not one that destroyed the foundation of your home while you were gone for weeks on vacation. Similarly, if you don't perform preventive maintenance on your home, your home insurance may not cover any problems this caused or compounded in whole or part.
To see exactly what you need to do — including how often you need to have someone check on your home while you're away — review your insurance policy.
Business Activities
If you use your home for business, personal home insurance usually won't apply. This could include renting your home out, using it as a workshop, or having clients come to see you. You may not have coverage for any property damage or liability protection against any lawsuits.
Note that some activities may be allowed. This may include remote work on a computer with no clients coming to your home or storing tools that you bring to a client site. Check your home insurance policy for details and to see if you need to add business coverage.
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