The Basics of Home Insurance - What Is Excluded From Coverage in Oklahoma?

When you invest in a home, protecting it with the right insurance coverage is a top priority. However, understanding what is and isn’t covered under your homeowners insurance policy in Oklahoma is important to avoid any surprises when you file a claim. While homeowners insurance offers significant financial protection for your home and personal property, certain exclusions apply, and these can vary depending on your specific policy and location.

​Knowing these exclusions allows you to make informed decisions about whether additional coverages or endorsements are necessary to make sure your home and assets are fully protected.

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Common Exclusions 

Most standard homeowners insurance policies, such as HO-3 policies, cover a wide range of perils, but they also have limitations. In Oklahoma, where weather patterns and geographic conditions can vary greatly, understanding these exclusions is key. Here’s a closer look at the common exclusions you’ll find in most policies:

Flood Damage

Flooding is a significant risk in many parts of Oklahoma, particularly in areas prone to heavy rains and flash floods. Unfortunately, flood damage is not covered by standard homeowners insurance policies. This exclusion means that if your home is damaged by rising waters, your policy won’t cover the cost of repairs or the replacement of personal property.
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Flood insurance must be purchased separately, either through the National Flood Insurance Program (NFIP) or a private insurance company. Given Oklahoma’s susceptibility to heavy rains and flooding, especially in low-lying areas and near rivers, obtaining flood insurance is a wise investment. Even if you don’t live in a high-risk flood zone, flood insurance can be valuable as floods can occur unexpectedly due to sudden weather changes.

Earthquake Damage

Oklahoma has seen an increase in seismic activity in recent years, making earthquake damage a concern for many homeowners. Standard homeowners insurance policies do not cover damage caused by earthquakes. If your home suffers structural damage due to an earthquake, you will be responsible for the repair costs unless you have an earthquake endorsement on your policy.
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Earthquake insurance is an optional coverage that can be added to your existing homeowners policy. This endorsement provides coverage for repairs to your home and other structures, as well as replacement costs for personal belongings damaged during an earthquake. With the rising risk of seismic activity, particularly in areas like Oklahoma City and surrounding regions, this additional coverage can offer peace of mind

Sewer Backup

Sewer backups are another common exclusion in homeowners insurance policies. A sewer backup can cause significant water damage to your home, leading to costly repairs and potential health hazards. Unfortunately, standard policies do not cover this type of damage.

​Adding sewer backup coverage to your policy can protect you from the financial burden of repairing water damage caused by a backed-up sewer or sump pump failure. This additional coverage is especially important for homeowners in older neighborhoods with aging infrastructure, where the risk of sewer backups may be higher. In Oklahoma City, where rapid urban development is putting pressure on existing sewer systems, this coverage can be a critical safeguard.

Wear and Tear

Homeowners insurance is designed to protect against sudden and accidental damage, not gradual deterioration. Therefore, wear and tear, as well as damage caused by poor maintenance, is typically excluded from coverage. This includes issues like roof repair due to aging shingles, plumbing leaks from old pipes, and general home upkeep.
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For homeowners, this exclusion highlights the importance of regular home maintenance. Making sure that your home is well-maintained can prevent small issues from becoming significant problems that aren’t covered by your insurance. If your home has older systems or structures, you might consider additional coverage options, such as a home warranty, to cover repairs that homeowners insurance won’t.

Mold Damage

Mold can be a serious issue in homes, particularly in humid climates or areas with frequent rain. While standard homeowners insurance policies do not typically cover mold damage, there are exceptions. If the mold is the result of a covered peril, such as a burst pipe, your policy may provide limited coverage. However, if mold develops due to long-term neglect or poor maintenance, it’s unlikely to be covered.
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To protect against mold, homeowners should take preventive measures, such as controlling humidity levels, fixing leaks promptly, and ensuring proper ventilation in areas like bathrooms and basements. In some cases, you may be able to purchase a mold endorsement to add to your policy, which can provide broader coverage for mold-related damages.

Optional Coverages to Consider

Given the exclusions in a standard homeowners insurance policy, Oklahoma homeowners should consider additional coverages or endorsements to ensure comprehensive protection. Here are some of the most important options to discuss with your insurance agent:

Flood Insurance

As previously mentioned, flood insurance is important for homeowners in areas prone to flooding. Whether you live near a waterway or in an area that experiences heavy rainfall, flood insurance can protect you from devastating financial loss.

​This coverage will pay for repairs to your home and the replacement of personal belongings damaged by floodwaters. Given the unpredictability of Oklahoma weather, flood insurance can be a critical addition to your homeowners policy.

Earthquake Insurance

Oklahoma’s increased seismic activity makes earthquake insurance a valuable endorsement for homeowners. This coverage will protect your home’s structure, as well as other buildings on your property, from the costs associated with earthquake damage. By adding earthquake insurance to your policy, you can make sure that your home is protected against the financial impact of a significant seismic event.

Water Backup Coverage

Water backup coverage is an optional endorsement that can protect your home from the costly damage caused by sewer backups or sump pump failures. Given the potential for heavy rains and older plumbing systems in Oklahoma, this coverage can save you from significant out-of-pocket expenses. Adding this endorsement to your policy can provide peace of mind, knowing that you’re protected from this common but often overlooked risk.

Additional Living Expenses Coverage

While most standard homeowners policies include additional living expenses (ALE) coverage, the limits may not be sufficient in the event of a major disaster. ALE coverage pays for temporary housing and other living expenses if your home becomes uninhabitable due to a covered peril. Discuss with your insurance agent whether increasing your ALE coverage limits is a good option for your situation, especially if your home is in an area prone to severe weather or other risks.

Personal Liability Coverage

While standard homeowners policies provide some personal liability coverage, it’s worth considering whether your current limits are adequate. Personal liability coverage protects you if someone is injured on your property or if you’re found responsible for damage to someone else’s property. In today’s litigious society, having higher liability limits can protect your assets in the event of a lawsuit.

The Role of an Insurance Agent in Securing Coverage

Navigating the complexities of homeowners insurance can be daunting, especially when considering the various exclusions and additional coverages available. This is where the expertise of an insurance agent becomes invaluable. A knowledgeable insurance agent in Oklahoma City can help you understand your policy’s exclusions, recommend necessary endorsements, and make sure that you have the right amount of coverage for your home and personal property.

At Oklahoma Insurance Pros, we specialize in providing tailored insurance solutions for homeowners across Oklahoma. Our team of experienced agents is here to guide you through the process of selecting the right coverages, from flood and earthquake insurance to water backup coverage and more. We work with a wide range of insurance companies to find the best policies that meet your needs and budget.
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Whether you’re purchasing a new home or reviewing your current insurance policy, contact Oklahoma Insurance Pros today. Let us help you secure the comprehensive coverage you need to protect your most valuable asset—your home.
For more information on the basics of homeowners insurance and what’s included in a standard policy, check out our other blog posts:

• The Basics of Home Insurance - Dwelling Value
• The Basics of Home Insurance - Personal Property Coverage Explained
• The Basics of Home Insurance - Liability Protection Demystified
• The Basics of Home Insurance - Loss of Use Coverage Explained

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Scott Godwin
Founder

Oklahoma Insurance Professionals LLC serves Oklahoma City and the surrounding Oklahoma communities by protecting the people we work with just like we protect our own family members. Home insurance, auto insurance, business insurance, and more. We can help you find the coverage you need. ​