What Home Insurance Does Not Cover


Does home insurance cover flood damage? 


No. Standard home insurance policies typically do not cover damage caused by flooding.  You’ll need a separate flood insurance policy, available through the National Flood Insurance Program (NFIP) or private insurers, to protect your home and belongings from flood-related losses. 


Are sewer backups covered by home insurance? 


Sewer backups and sump pump failures may not be covered in standard policies.  However, you can often add an “endorsement” or “rider” to your policy to obtain coverage for these events. 


Does home insurance protect against wear and tear or aging-related damage? 


No. Home insurance does not cover damage resulting from normal wear and tear, aging, or a lack of maintenance.  Regular home maintenance is essential to prevent such issues. 


What about pests and termite damage? 


Damage from pests like termites, rodents, or insects is generally not covered by home insurance.  Preventative measures and pest control services are necessary to avoid these problems. 


Are high-value items like jewelry and art covered by home insurance? 


While home insurance includes coverage for personal belongings, it often has limits on high-value items.  Additional coverage called a “rider” or “endorsement” may be necessary to fully protect these items. 



Sidebar: Mansion Tax in New York  


The New York City Mansion Tax is a progressive buyer closing cost that ranges from 1 percent to 3.9 percent of the purchase price on sales valued at $1 million or more. The Mansion Tax itself consists of eight individual tax brackets, with the lowest rate of 1 percent applying to purchases at or above $1 million and less than $2 million. The highest Mansion Tax rate of 3.9 percent applies to purchases of residential property valued at $25 million or more. Prior to the 2019 update, the Mansion Tax was a fixed rate of 1 percent for all purchases of $1 million or more. 






Sidebar: FUN FACT  


In 2006, when city employees conducted a structural inspection of the Brooklyn Bridge, they uncovered a Cold War-era bunker just below the bridge’s main entrance near Manhattan. The dark, dusty room was chock full of water drums, hundreds of thousands of crackers, paper blankets, and medical supplies. And to make a fun fact even more fun, the bridge is home to even more secret areas including a series of eight rooms originally intended for a shopping arcade but later used for storage!