The July 23 piece explains where standard policies often fall short, including floods, earthquakes, mold, pests, liability limits and high-value item coverage.
HelloNation said a newly published article examines common gaps in homeowners insurance coverage that first-time buyers should understand before filing a claim. The piece says standard homeowners policies typically cover four main areas: the home’s structure, other structures on the property, personal belongings and liability if a visitor is injured. It adds that covered structural losses often include fire, wind, hail, theft and vandalism, while damage tied to neglect is usually excluded. The article highlights the difference between named peril coverage, which pays only for losses specifically listed in a policy, and open peril coverage, which applies except for stated exclusions. It says water damage is frequently misunderstood, with sudden events such as a burst pipe often covered but slow leaks and long-term seepage generally excluded. Flood and earthquake losses are usually not covered under standard homeowners insurance, making separate policies important in higher-risk areas. HelloNation’s article also says mold coverage depends on the cause, with mold following a sudden covered event potentially included while mold linked to neglected maintenance is usually excluded. Pest infestations and rodent damage are generally treated as maintenance issues and left out of coverage. It also distinguishes replacement cost from actual cash value, noting that the former pays to rebuild without deducting depreciation while the latter factors depreciation in. The piece says liability coverage can help pay legal costs if a homeowner is sued, while additional living expense coverage can help with temporary housing when a covered event leaves a home unlivable. It recommends documenting belongings with photos or a written inventory to make claims easier. The article also advises reviewing liability limits periodically, noting that additional living expense limits are often tied to a percentage of dwelling coverage and that high-value items such as jewelry, art or collectibles may require a separate endorsement (policy add-on for extra coverage). David Stroman, an Insurance Agent based in Charlotte, North Carolina, is featured in the article. HelloNation said the article recommends comparing homeowners insurance coverage every year or two and updating a policy after a major renovation or other life change.