What Isn’t Covered by Homeowners Insurance?

Your homeowners insurance policy is designed to protect you against financial loss from unexpected events like fire, theft, and certain natural disasters. But many policyholders assume that everything they own is fully covered, only to find out too late that certain items have limits, exclusions, or may not be covered at all.

According to the Insurance Information Institute, nearly one in four homeowners (23%) mistakenly believe their insurance covers all types of personal property without limits. Let’s clear that up by looking at some of the most commonly overlooked items.

Valuables with Strict Dollar Limits

Standard policies often impose sub-limits on certain high-value categories. Here are a few examples:

Jewelry and Watches: Often capped at $1,500–$2,500 for theft. If you have an engagement ring, luxury watch, or other valuable item, you’ll likely need to “schedule” them separately with additional coverage.
Fine Art and Collectibles: Might not be covered at full value unless appraised and scheduled.
Firearms: Coverage for theft is usually limited to $2,000 or less, depending on your policy.
Cash and Precious Metals: Typically limited to $200–$500, not nearly enough if you keep significant cash at home.

Electronics and Hobby Equipment

While laptops, cameras, and TVs are generally covered, some policies limit high-value electronics, especially if they are used for business. Musical instruments, sports gear, or drone equipment may also have sub-limits unless specifically insured.

Motorized Vehicles

Most homeowners policies do not cover motorized vehicles, even if they’re stored in your garage. That includes:

Golf carts
ATVs
Dirt bikes
Scooters
Ride-on mowers

To protect these, you may need a separate recreational vehicle policy or endorsement.

Business Property

Running a business from home? Most homeowners policies cover only about $2,500 of business equipment. If you operate a side hustle or remote office with high-end gear, talk to your agent about a home business endorsement or commercial policy.

What Can You Do?

An annual insurance review is the best way to identify potential gaps. If you have high-value items or unique risks, your agent can help schedule specific items, increase sub-limits, or recommend appropriate riders or policies.