Did you know that homeowners insurance is more than just fire and theft protection? In 2023, premiums soared by 21%, driven by extreme weather events, highlighting how vital this coverage has become.1
But insurance can also cover unexpected situations that many homeowners aren’t aware of. A staggering 5.3% of homes filed a claim in 2021, pointing to the valuable protection these policies provide.2
Curious about what else might be covered? Here are 15 surprising aspects of home insurance that could save you from unexpected financial burdens!
1. Identity Theft
If a criminal steals your personal information to commit fraud, dealing with the fallout can be time-consuming and expensive.
Luckily, many home insurance policies now include coverage for identity theft. This can help pay for things like legal fees, lost wages from time taken off work to resolve the issue, and even the cost of hiring a case manager to help you through the process.
Identity theft is a growing problem, with millions of Americans falling victim each year. In 2021 alone, consumers reported losing nearly $6 billion related to fraud and identity theft, according to the Federal Trade Commission.(ref) Having this coverage can provide peace of mind and financial protection if your identity is compromised.
2. Spoiled Food
Has a power outage ever caused all the food in your fridge and freezer to spoil? If so, your home insurance may be able to help. Many policies provide reimbursement for food that goes bad due to a power outage caused by a covered peril, like a windstorm that knocks out electricity.
Coverage limits for spoiled food are usually around $500 per incident, which can help restock your kitchen. Some insurers may require you to provide an itemized list or even photos of the spoiled food. Be sure to check your specific policy for details on how to file a claim.
3. Falling Objects (like Meteors!)
Believe it or not, damage from falling objects – even meteors – is covered by most standard home insurance policies. While the odds of a meteor landing on your house are extremely low, knowing you’d be protected from this cosmic calamity is comforting.
This coverage commonly applies to things like trees and branches that fall on your home due to wind, ice, or other weather events.
Outdoor items like patio furniture and fences are usually covered as well if falling objects damage them. There may be coverage limits, so review your policy to understand how much protection you have.
4. Dorm Room Possessions
If you have a child living away at college, their belongings may be covered by your home insurance policy. Many insurers provide 10% of your personal property coverage limit for items kept in a dorm room.
So if your policy covers $100,000 of personal property, up to $10,000 of your child’s possessions would be protected.
There are some limitations to be aware of. The dorm must be located within a certain distance from your home, often 100 miles. And certain high-value items like jewelry and electronics may have lower coverage sublimits.
Some insurers also require your student to be enrolled full-time. Check with your agent for specifics.
5. Unauthorized Credit Card Charges
In addition to identity theft coverage, some home insurance policies will reimburse you for unauthorized charges made on your credit cards. This is often an optional add-on rather than part of a standard policy. Coverage limits tend to be fairly low, around $500 to $1000.
To be covered, you need to report the fraudulent charges to your credit card company immediately upon discovery. Save any communications and paperwork, as your insurer will likely require this documentation.
Reimbursement can help offset the inconvenience and aggravation of resolving fraudulent charges.
6. Damage Caused by Aircraft
Here’s another surprising peril covered by most home insurance policies – damage caused by aircraft. While extremely rare, planes and helicopters do occasionally crash into homes.
Damage caused by aircraft parts or cargo falling from the sky would also fall under this coverage.
Crashes into homes are highly uncommon. But isn’t it reassuring to know you’d be protected in this unlikely scenario? Your policy may also cover damage caused by other vehicles like a car accidentally driving into your house.
7. Volcano Damage
If you live in Hawaii or the Pacific Northwest, damage caused by volcanic eruption may be a more pressing concern. The good news is that most home insurance policies cover this peril. This includes damage from lava flows, ash, dust, and volcanic blasts.
However, areas with active volcanoes are often designated as higher risk, making insurance more expensive or difficult to obtain. If you live near a volcano, work with an experienced agent to ensure adequate coverage.
You may need to purchase a separate volcano insurance policy.
8. Riot & Civil Commotion
Civil unrest is another unexpected situation that home insurance generally covers. If your home or belongings are damaged due to a riot, your policy can help pay for repairs or replacement. This coverage may fall under the “vandalism and malicious mischief” section of your policy.
Of course, no one wants to imagine their community erupting into chaos. But in the event of an unfortunate incident, you can have peace of mind knowing your home is protected.
As with many coverages, there may be limits, so be sure to review your policy documents.
9. Debris Removal
After a major disaster, your property may be a mess of fallen trees, scattered belongings, and structural debris. Cleaning it all up can be a massive chore, not to mention expensive. Thankfully, home insurance usually includes coverage for debris removal necessitated by a covered peril.
If a tornado rips through your yard, for example, your insurance would likely pay for the removal of downed trees and scattered rubble so repairs can begin. Coverage may be capped at a percentage of your total dwelling limit, often around 5% to 10%. Debris removal is essential for getting life back to normal after a disaster.
10. Damage from Illegal Activities
What happens if a criminal breaks into your home to steal or vandalize? Or if the police damage your property while apprehending a suspect? Perhaps surprisingly, damage stemming from illegal activities is usually covered by home insurance.
This could include repairing a broken window from a burglary or replacing stolen valuables. If law enforcement officials break down your door while pursuing a criminal, that damage would likely be covered as well.
No one wants crime to occur on their property, but if it does, insurance can help make you whole again.
11. Accidents Caused by Your Children
Raising kids is full of unexpected twists, including the occasional accident or mishap. If your child unintentionally injures someone or damages their property, your home insurance can provide liability coverage.
For example, if your son accidentally throws a baseball through the neighbor’s window, your policy could pay for a replacement.
Liability coverage also extends to injuries caused by your kids, like if your daughter’s friend gets hurt while playing in your yard. Of course, this coverage has limits and only applies to accidental damage. Intentional or malicious acts would not be covered.
12. Damage from Rodents & Insects
No one wants to discover an infestation of mice or termites. But if these critters damage your home, your insurance may be able to help.
Many policies cover damage caused by rodents and insects up to a specified limit. This could include things like chewed wiring or termite damage to your home’s structure.
However, most policies won’t cover infestation removal or extermination costs. There may also be coverage exclusions for certain pests like bed bugs. If you live in an area prone to termites or other destructive bugs, consider adding an endorsement to your policy for more robust coverage.
13. Counterfeit Money
Ending up with counterfeit bills is a frustrating experience. But if you unknowingly accept fake money in a private transaction, like selling an item online, your home insurance may reimburse you. This coverage is usually part of an add-on or endorsement rather than a standard policy.
To be covered, you’ll need to file a police report about the counterfeit money. Your insurer will likely also require evidence of the transaction, like receipts or online communication records.
Reimbursement limits are usually low, around a few hundred dollars. But it’s better than being stuck with worthless bills.
14. Grave Markers & Mausoleums
Here’s one you probably never considered – many home insurance policies cover grave markers and mausoleums. If your family owns a cemetery plot with a headstone or small mausoleum, damage to these structures is often covered, up to a specified limit.
This coverage typically only applies to grave markers and mausoleums owned by you or a family member covered by your policy. Damage caused by weather, vandalism, and vehicles would likely be included. However, normal wear and tear or poor maintenance are excluded.
15. Stampeding Cattle
Yes, you read that right. Many home insurance policies cover damage from stampeding cattle and other livestock. This may seem absurd, but it’s a real risk in some rural areas. If a herd of cows tramples your garden or damages your fence, your insurance could pay for repairs.
Coverage applies whether the stampede originates from your own livestock or someone else’s. However, the damage must be sudden and accidental. If your cattle repeatedly escape and cause damage, that would likely not be covered. This protection falls under the “sudden and accidental” damage clause included in most policies.
As you can see, home insurance covers a lot more than just fires and burglaries. Of course, coverage specifics vary by insurer and policy. Review your documents carefully and consult with your agent to make sure you understand what is and isn’t covered.
Hopefully you’ll never need to use most of these protections – but it’s reassuring to know they’re there just in case.
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Davin is a jack-of-all-trades but has professional training and experience in various home and garden subjects. He leans on other experts when needed and edits and fact-checks all articles.