2 Items That Your Homeowners Insurance May Not Cover

Most people think about their homeowners insurance only a few times in their lives: when they select their insurer, when they're writing premium checks and when they have a claim.

By the time something goes wrong, however, it's usually way too late to begin learning about your policy.

There are some gaps in your coverage you can't do anything about, of course. Insurers aren't going to cover you for a nuclear accident, for example, no matter how many companies you ask.

Many so-called exclusions, though, vary by the insurer. If you know about them in advance, you may be able to switch carriers or buy extra insurance to stay protected. So pull out your policy and check for the following:

Mold and water damage

A spike in mold-related claims at the turn of the century led most insurers to strike the coverage entirely from their homeowners policies.

The frenzy over toxic mold reached a peak around 2002, the year television personality Ed McMahon filed a $20 million lawsuit against his insurer over mold that he said sickened his family and killed his dog. (McMahon later settled for $7.2 million.) A huge increase in mold-related claims in Texas, California, Florida, Nevada and Arizona led insurers to eliminate or at least reduce their exposure.

Most homeowners insurers now exclude mold from their coverage, said Frank J. Coyne, chairman and CEO for the Insurance Services Office, which supplies statistical data to property and casualty insurers. Many insurers also limit how much they'll cover for water damage.

In fact, in some cases you may have trouble getting coverage for a home that's had water claims in the past.

Sewer backup

The only thing more disgusting than a bathroom floor overflowing with waste is the fact that you may have to pick up the cleaning bill yourself.

Sewage backups are frequently not covered by homeowners policies unless you purchase a special rider. Many homeowners who experience this particular disaster try to get their cities to pay for the damage, but governments typically aren't liable unless the homeowner can prove negligence -- and is willing to go to court over the matter.

A cheaper solution? Check your policy, and if you're not covered, buy the rider for $50 to $100.