What Isn’t Covered Under a Standard Homeowners Policy 

Many California homeowners assume their homeowners insurance will cover anything that goes wrong. It is an understandable assumption, especially with the rising cost of living and the increasing value of personal belongings. But a standard homeowners policy has limits, and some of the most common gaps involve everyday items. Jewelry, cameras, bikes and tools often have restricted coverage, and many homeowners do not realize it until after a loss.

Limited Coverage for High-value Personal Items

A standard homeowners policy includes coverage for personal property, but that coverage is subject to caps. Items like engagement rings, watches, fine jewelry, high-end cameras and collectibles often exceed those limits. If these items are stolen or damaged, the payout may fall far short of their value.

Many homeowners are surprised to learn that even if their policy lists a total personal property limit, individual categories within that limit may have much lower sublimits. A single stolen ring or camera can quickly exceed those caps.

Scheduling valuable items or adding a personal articles policy can close this gap and provide broader protection.

Restrictions on Bikes, Sporting Equipment and Outdoor Gear

Sausalito, CA homeowners may have bikes, surfboards, camping gear and other outdoor equipment. These items are frequently stored in garages or vehicles, which makes them vulnerable to theft. Standard policies may cover them, but only up to a limited amount and only under certain circumstances.

If you own high-end bikes or specialized sporting equipment, it is worth reviewing your policy to see whether the limits match the value of what you own.

Limited Protection for Tools and Equipment

Homeowners who keep tools for home projects, landscaping or side businesses may not realize how limited their coverage is. Power tools, toolboxes and equipment stored in sheds or garages can be expensive to replace, and standard policies often cap coverage for these items.

If you use tools for any type of paid work, even occasionally, they may not be covered under a standard homeowners policy. Business-related equipment typically requires separate coverage.

Exclusions for Earthquake and Flood Damage

In Sausalito, CA, earthquake coverage is not included in a standard homeowners policy. Many homeowners assume they have at least some protection, but earthquake damage requires a separate policy or endorsement.

Without it, damage to your home, foundation or personal property caused by seismic activity will not be covered.

Flooding from storms, overflowing rivers or heavy rainfall is not covered under a standard homeowners policy. Homeowners who live near the coast, in low-lying areas or in regions prone to heavy storms may need separate flood insurance to protect their property.

Wear and Tear

Insurance is designed for sudden and accidental losses, not gradual deterioration. Damage caused by aging roofs, plumbing leaks that develop over time, mold or lack of maintenance is typically excluded.

Review Your Policy

Homeowners insurance is an important financial tool, but it is not all-inclusive. Many Californians do not realize that items they rely on every day may not be fully protected. Reviewing your policy and understanding its limits can help you decide whether you need additional coverage, such as scheduled personal property, earthquake insurance or a separate policy for high-value items.

If you want help reviewing your coverage or exploring home insurance coverage options, the team at Muzio & Rovero Insurance Services is here to help. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.