Your home is often your biggest financial investment. But many homeowners don’t realize that their insurance policy has limits — and they find out the hard way after a storm, water leak, or accident.
The Myth: “Everything’s Covered”
Most people assume that if damage happens to their home, insurance will take care of it. Unfortunately, the truth is more complicated.
What’s Not Covered by Standard Homeowners Insurance
- Flooding – Water that enters your home from outside (rising creeks, flash floods, heavy rain pooling against your foundation) isn’t covered. You need a separate FEMA-backed flood policy. In Oklahoma, even areas outside “flood zones” can experience sudden water damage.
- Service Line Breaks – If the sewer, water, or electrical line running from the street to your home breaks, most homeowners are shocked to learn they’re responsible. Service line coverage can usually be added for a few dollars a month.
- Earth Movement – Earthquakes, sinkholes, and shifting soil aren’t covered unless you specifically add earthquake coverage. Oklahoma has seen a rise in earthquake activity in recent years, making this worth considering.
- Roof Exclusions and Deductibles – With our hailstorms, insurers have adapted policies to limit roof payouts. That might mean a higher deductible (often 1%–2% of your home’s value) or cosmetic damage exclusions (where only functional damage is covered, not appearance).
Common Coverage Gaps Homeowners Don’t Think About
- Replacement cost vs. actual cash value: If your policy only pays “actual cash value,” depreciation will be subtracted from your claim. That could mean thousands less than what you need to replace your property.
- Personal property sub limits: Jewelry, firearms, collectibles, and fine art often have strict limits unless you “schedule” them separately.
- Water backup coverage: If your sump pump fails or a drain backs up, cleanup and damage can cost $5,000–$10,000 — and most basic policies exclude it.
Protecting Your Home the Right Way
Oklahoma weather is unpredictable, and so are the risks of homeownership. Instead of assuming you’re covered, sit down with an independent agent to:
- Review your deductibles.
- Add endorsements (service line, water backup, scheduled items).
- Ensure you’re insured for replacement cost, not depreciated value.
Bottom line: Home insurance isn’t “one size fits all.” Take time to understand your coverage before storm season hits.
Stay Tuned For Other Great Reads In This Month’s Newsletter
- Why the Cheapest Auto Insurance May Cost You More in Oklahoma
- Why Renters Insurance is a Must in Oklahoma (Even if You Don’t Own a Home)
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