The Hidden Gaps: 7 Things Your Home Insurance Might Not Cover
Most homeowners learn what their policy doesn’t cover the hard way—after a soggy basement, a roof peeled by wind, or a repair quote that includes expensive code upgrades. The truth: standard policies are built to cover sudden, accidental losses, not every hazard. Here are the seven gaps that catch people most often, with fixes that actually work.
Snapshot: the 7 common gaps (and the easy fixes)
| Gap (what’s missing/limited) | Why it’s tricky | Typical price tag when it bites | The fix you ask for | Proof to keep handy |
|---|---|---|---|---|
| Flood & surface water (rising water from outside) | Standard home policies exclude flood | Clean-up & rebuild can run five figures quickly | Separate flood policy (public or private) | Photos, elevation info, drainage notes |
| Earth movement (earthquake, landslide, sinkhole) | Often fully excluded without a rider | Foundation/structural repairs can be cost-heavy | Earthquake/earth-movement endorsement or stand-alone policy | Seismic retrofits, foundation photos |
| Sewer/Drain backup & sump overflow | Considered a mechanical/utility failure, not a covered peril | Basement losses frequently $8k–$20k | Water-backup endorsement (set a limit you can live with) | Sump/basement photos, plumber’s reports |
| Long-term seepage & mold | Seen as maintenance, not sudden loss | Mold remediation often capped or excluded | Tighten plumbing; add mold buy-back where offered | Moisture readings, leak repairs, dehumidifier invoices |
| Ordinance or law (building code upgrades) | Policies cover “like-kind” repairs; code upgrades are extra | Adds 10–20% on older homes after a big loss | Ordinance or law coverage (10–50% of Coverage A) | Year-built, prior permits, contractor estimates |
| Roof settlement rules & “matching” | Older roofs may be paid at ACV; some carriers won’t match undamaged materials | Thousands left uncovered for depreciation/mismatched shingles | Replacement-cost on roof/material matching endorsement (where offered) | Roof age/type, prior roof paperwork |
| Service-line failures (buried water/sewer/gas, electrical to the house) | Lines on your parcel are your responsibility | Typical dig & replace $2k–$7k; more with landscaping | Service-line endorsement | Site photos, utility mark-outs, invoices |
Two rules of thumb: (1) If it happens gradually, your policy probably won’t love it. (2) If it’s underground or outside rising water, assume it’s excluded unless you add it.
1) Flood & Surface Water (the biggest blind spot)
- What’s covered: Sudden water from inside (burst pipe) usually covered.
- What’s not: Rising water from outside (river overflow, heavy rain pooling, overwhelmed drains) = flood → excluded on standard policies.
- Fix: Get a separate flood policy. Even away from coasts, heavy rain plus older drainage makes inland flooding a growing risk.
Pro move: If you’re on any kind of low spot, near creeks or aging storm sewers, price flood even “outside the zone.” The premium is often lower than people think—and cheaper than replacing floors, cabinets, and drywall out-of-pocket.
2) Earth Movement (earthquake, landslide, sinkhole)
- Standard forms exclude shaking or shifting of earth.
- Fix: Add an earthquake/earth-movement rider or a separate policy.
- Deductibles here are commonly a percentage of your dwelling limit. Make sure the dollar amount is realistic for you.
3) Sewer/Drain Backup & Sump Overflow
- A backed-up main, failed sump, or municipal surge is not the same as a burst pipe. Without a rider, the mess in your basement is often not covered.
- Fix: Add water-backup coverage with a limit that matches your finish level (unfinished storage ≠ finished theater). Many homeowners choose $10k–$25k limits.
4) Long-Term Seepage & Mold Limits
- Slow drips, roof seepage, or damp crawlspaces are labeled maintenance.
- Mold is often capped (e.g., $5k–$10k) or excluded unless triggered by a covered loss.
- Fix: Be proactive—replace supply lines, add leak sensors/auto shutoff, run dehumidifiers. Ask your carrier if a mold buy-back is available.
5) Ordinance or Law (code upgrades)
- After a fire or major water loss, bringing older areas up to current code (electrical, structural, insulation) can add a double-digit percentage to the bill.
- Fix: Add Ordinance or Law coverage—often 10%, 25%, or 50% of Coverage A (dwelling). Older houses should lean higher.
6) Roof Settlement & “Matching”
- Some policies pay older roofs at Actual Cash Value (ACV) (replacement minus depreciation).
- “Cosmetic matching” is another curveball: if only part of a roof or siding is damaged, some carriers will replace just that part—even if the patch obviously doesn’t match.
- Fix: Ask for replacement-cost on roof surfaces and, where available, a matching endorsement. Know any age cutoffs (e.g., roofs over 15 years).
7) Service-Line Failures (the wires and pipes you never see)
- The buried lines between the street connection and your home (water, sewer, electric, gas) are usually your responsibility.
- Breaks and leaks mean excavation, permits, and patching landscaping/hardscape.
- Fix: Service-line endorsements are inexpensive and save huge headaches.
Bad-Year Math: why a few riders beat a “cheap” policy
(Sample numbers—swap in your local quotes and limits.)
| Item | Bare-bones policy | Policy with targeted riders |
|---|---|---|
| Annual premium | $2,000 | $2,240 |
| Named loss #1: Sewer backup (cleanup + finishes = $14,000) | Not covered | $1,000 after water-backup deductible |
| Named loss #2: Service-line break (dig + replace = $4,500) | Not covered | $500 after service-line deductible |
| Named loss #3: Code upgrades after kitchen fire (electrical, insulation = +$6,000) | Not covered | Covered under Ordinance or Law |
| Out-of-pocket in a bad year | $24,500 | $2,500 |
| Extra annual premium | — | +$240 |
Paying $240 more per year to avoid $22,000 of risk is what “smart coverage” looks like.
How to ask your agent (copy/paste email)
Subject: Add-on review for hidden gaps
Hi [Name],
Please quote my current policy with:
• Water-backup coverage at $10k / $1k deductible
• Service-line coverage at your recommended limit
• Ordinance or Law at 25% (or 50%) of Coverage A
• Replacement-cost for roof surfaces and any available matching endorsement
• A separate quote for flood (pref. building + contents)
Also confirm how my roof is currently settled (RCV vs ACV) and any age thresholds.
Thanks!
Quick audit (10 minutes, one cup of coffee)
- Flood: ☐ Quoted ☐ Purchased | Any low spots or past pooling?
- Earth movement: ☐ Rider quoted | Deductible in dollars: $_____
- Water-backup: Limit $_____ | Deductible $_____ | Sump/backflow valve installed ☐
- Mold cap: $_____ | Dehumidifier/leak sensors in place ☐
- Ordinance or Law: ☐ 10% ☐ 25% ☐ 50% | Year built ______
- Roof: ☐ Replacement-cost ☐ ACV | Age ____ yrs | Matching endorsement ☐
- Service-line: Limit $_____ | Deductible $_____
Mini-glossary you’ll actually use
- ACV (Actual Cash Value): Replacement cost minus depreciation.
- RCV (Replacement Cost Value): New-for-old (up to limits); often paid in two steps (ACV now, holdback after repairs).
- Ordinance or Law: Pays to bring repaired areas up to current code.
- Water-backup: Covers water entering from drains/sumplines, not rising floodwater.
- Service-line: Buried pipes/wires on your property.
Bottom line
Policies protect best against sudden, accidental losses—and leave gaps around outside water, earth movement, mechanical backups, code upgrades, roof depreciation, and underground lines. Spend your next renewal aiming at these seven weak spots. A few precise riders can turn a “hope it pays” policy into one that performs on your worst day—without bloating your budget.