Homeowners Insurance: Expert Michael Oehrke on Coverage Gaps

The core of a standard policy focuses on the physical structure of a residence, covering damages from fire, wind, hail, and vandalism. Beyond the walls and roof, these policies typically extend to personal property like electronics and furniture, and include liability protection for injuries occurring on the premises. Oehrke notes that policies also often cover additional living expenses, such as temporary housing, if a home becomes uninhabitable due to a covered peril.

However, the boundaries of coverage are often misunderstood. Standard policies exclude damage resulting from neglect or normal wear and tear, and they specifically omit flood damage, which requires a separate policy. Furthermore, high-value items like jewelry or artwork often exceed standard coverage limits, necessitating additional endorsements for full protection.

Oehrke emphasizes that homeowners must also look beyond the home itself. Those operating businesses from their property face significant gaps, as standard policies rarely cover business inventory or professional liability. With deductibles directly impacting out-of-pocket costs and home renovations potentially altering coverage needs, regular policy reviews are essential to ensure protection aligns with current risk levels.