What are the major Homeowners liability exclusions?


Knowing what your home insurance policy excludes is equally as important as being aware of the coverages it provides. Sometimes even more so.

Every potential home insurance holder should know their policy's coverage gaps and try to find a way to cover them. This applies to damages to personal property, or course, but it is especially the case with third-party liability which can potentially empty a home owner's pocket.

Major Homeowners Liability Exclusions

  • Business-related damages or loss are specifically excluded from home insurance policies. If your business is based on the premises of your home, your Homeowners coverage will not protect you from liability. You should add certain riders to your policy if you wish to receive the necessary coverage. If you are a nanny, for instance, you can get a childcare liability coverage.
  • If you rent your home to two or more roomers, your home insurance policy will not protect you if they get injured and decide to start a lawsuit against you for liability.
  • Second homes or places that you rent are excluded from your Homeowners policy. You need to buy separate dwelling insurance for the second home you own or renters insurance for the place you rent long-term. Either way, make sure you include liability coverage.
  • Motor vehicles are specifically excluded from Homeowners policies. You need to buy auto insurance to provide coverage for a car, and recreational vehicle insurance if you own an ATV, a trail bike, a golf cart, etc.
  • Boat liability is usually excluded from Homeowners policies but there are some exceptions for boats with certain motors and of certain size, which you should check with your insurance provider before signing the contract.
  • If you rent a recreational vehicle, you need a special coverage for any damage to the rented item that may occur while you are operating it. Your home insurance policy will not cover the damages, but an umbrella might do.
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