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As an insurance agent, the worst thing is telling a client they don’t have coverage for a claim.  Home policies protect you for many different types of financial loss but they don’t cover everything.

Here is a list of 5 of the Most Common Claims that get denied.


Water losses are generally not covered if the water originates outside the walls of the home and/or it the water hits the ground prior to entering the home.  An example is when a hard rain storm fills a window well and then breaks the window or it seeps through the seal in the window flooding a basement.  Another example is when a hose is left running in a flower bed and eventually if left on, pours into a window well and then seeps through or breaks a window flooding a basement.

Main Water Line

As a home ages, your main water line can develop cracks or have tree roots grow into it.  When a main water line breaks you end up with a large amount of water in your front yard.  This cost of this repair is around $5,000 to have a company come in with a back hoe and replace your main line.  All insurance companies deny this claim because it dosen’t damage your home.

We do have a couple of companies that now offer a “service line” coverage which will pay for this repair.  It must be added to the policy.  It is NOT a standard coverage.

Foundation leaks

Occasionally, we get phone calls from clients wanting to file a claim because water is coming into their basement through cracks in their foundation.  This is excluded from coverage due to this type of water being considered “surface” water.  I am not aware of any additional coverage that can be purchased to protect you from this loss.

Stolen Jewelry

Most homeowners policies have a standard amount of coverage for your jewelry.  That amount is on average $1,000 per item and a total of $2,500 for all jewelry owned. (check with your agent for your coverage).  Your deductible also applies.  If you have a $2,500 ring that gets stolen and you have a $1,000 deductible you would end up recieving nothing for the claim.  This is because policies have a per item limit, usually $1,000 and then your deductible is applied.  The best way to avoid this gap in coverage is to schedule each jewelry item on your policy.  It costs about $12 per $1,000 of coverage per year.

Business Tools

Contractors oftentimes keep their tools in their trucks.  If a truck is stolen or broken into, the tools are usually stolen.  Auto policies do not offer coverage for personal or buisness property.  Homeowners policies don’t extend coverage to tools being used in a business.  In order to get coverage for your tools, add them to your commercial general liability insurance using the inland marine coverage.  This coverage protects them anywhere.


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  • Ridley Fitzgerald says:

    It’s good to know more about property insurance claims. I didn’t know that jewelry claims were denied a lot. My wife has a lot of jewelry, so we’ll have to look into this some more.

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