Home Insurance Coverage Gaps You Might Not Know Exist—Until It’s Too Late

You probably think your home insurance has you covered from top to bottom—and in many ways, it does. Fire? Check. Theft? Yep. A tree falling on your roof? Most likely. But here’s the hard truth: many homeowners discover the limits of their coverage only after disaster strikes. And by then, it’s too late to do anything about it—except foot the bill.

Whether you’re a first-time homeowner or have held a policy for decades, it’s crucial to understand what your home insurance doesn’t cover just as much as what it does. Let’s break down some of the most common—and costly—gaps in coverage that often fly under the radar.

Flood Damage: Not Covered by Standard Policies

Here’s the big one. Most homeowners don’t realize that standard home insurance does not cover flood damage. That means if a hurricane, storm surge, or even a heavy rainfall causes water to enter your home, you could be left paying out of pocket.

How to fix it: Consider adding a separate flood insurance policy through FEMA’s National Flood Insurance Program (NFIP) or a private insurer. Even homes outside of high-risk flood zones can benefit—25% of flood claims come from low-to-moderate-risk areas.

Windstorm Exclusions in Coastal Areas

Live near the coast? Many insurers in hurricane-prone areas carve out windstorm damage from standard home insurance. This means if high winds tear off your roof or send debris crashing through your windows, you might not be covered unless you have a windstorm policy.

How to fix it: Ask your agent if you’re in a designated wind pool region and whether wind coverage is excluded or requires a separate endorsement. Don’t wait until the first named storm of the season to find out.

Water Damage from Sewer Backups

Imagine raw sewage backing up into your home through the drains. Not only is it disgusting—it’s often not covered under a standard home policy.

How to fix it: Add a sewer or water backup endorsement. It’s usually affordable and could save you thousands (and a ton of stress) down the line.

Ordinance or Law Coverage

If your home is damaged and you need to rebuild, local building codes might require you to update your electrical, plumbing, or structural systems—even if the undamaged portions are still “okay.” Your base policy won’t usually pay for these upgrades.

How to fix it: Add ordinance or law coverage to your policy. It helps bridge the cost between what you had and what the current codes require.

Home-Based Business Property

Running a business out of your home? Most policies have very limited coverage for business property and no liability protection for clients visiting your home.

How to fix it: Consider adding a home business endorsement or a separate business policy if you store inventory or meet with clients regularly.

High-Value Items: Jewelry, Art, and Collectibles

Standard home insurance limits coverage for high-value personal property—like jewelry, art, or collectibles. If your diamond ring goes missing or your collection is damaged, you might only be reimbursed up to a set limit (often $1,500–$2,500), no matter what it’s worth.

How to fix it: Add scheduled personal property coverage, which allows you to insure specific high-value items for their full appraised value.

How to Find and Fix the Gaps in Your Home Insurance

The good news? Most of these gaps can be filled with endorsements, policy adjustments, or stand-alone coverage. But you’ve got to know where to look—and who to ask.

At TGS Insurance, we specialize in helping homeowners identify risks and build policies that actually protect what matters most. No fine print surprises. Just smart coverage and expert guidance from people who’ve got your back. Get a free homeowners insurance quote today!

Get a Policy Check-Up Today

Don’t wait for a gap in your insurance to become a crater in your finances. Reach out to the team at TGS Insurance and let us review your current policy. We’ll help you spot the blind spots and craft a custom solution to fill them—without overpaying.