Many Insurance companies would have you believe that whatever happens they will take care of your loss (witness the obscure space junk falling in the University of Farmers commercial), but there are several (more common) scenarios you need to be aware of where your Homeowners insurance may not protect you.
If your property is vacant (generally for more than 30 days) there may be some difficulty getting coverage for vandalism, or arson. Homeowners and Landlord policies are designed and priced with the assumption that there is someone living in the property and exercising at least some degree of care for the property.
If you have an employee who works inside the residence, and they are injured in the course of their duties (childcare, live in maids, etc.) their workers comp. protection may not be covered by your Liability unless noted in the policy with an endorsement. Likewise, Gardeners or property managers! The extension of your Liability coverage to Workers Comp coverage is aimed at employees who are only there temporarily, like house painters etc…though we hope you will only hire fully insured workers!
Homeowners coverage also protects your personal property away from home, but only a percentage of what your coverage is on your premises. On the flip side, it could replace your boat, jet ski, and their trailers while parked on your property, but will not cover them away from the property.
If you have valuable jewelry, silverware, fine arts, or firearms stolen from the home, Homeowners policies generally have sub-limits for theft as these types of articles can “get up and walk away”. Check your policy language, or better yet call your agent, to see if you need a Valuable Articles Floater to make sure these important valuables are truly protected from any loss.
If you own vacant land you may have liability exposure if someone trespasses on it and hurts themselves. Your Homeowners policy can extend liability coverage to these locations but they must be listed in the policy.
And finally, Homeowners does not protect you from Flood or Earthquake hazards. You need Specific Flood and Earthquake policies to protect you from those perils. While water damages are the most common of homeowner claims, the only damages generally covered by your Homeowners is from that of a pipe bursting. If the Carriers adjuster finds evidence that the loss occurred after evidence of a slow leak they may deny the claim. Remember, your Homeowners insurance protects you from a “sudden, catastrophic” loss, and should not be used to try to recover damages from what may have been a loss resulting from a lack of maintenance or repair.