What Building Insurance Does Not Cover

Building insurance does not cover all kinds of damages. The damages of the property due to military actions will not be covered. If a terrorism or revolution happens, the building insurance will not compensate the damages.

If the government gave an order to bulldoze or seize your building, the building insurance will not provide compensation as well. Most of the time, the government will ask the people to evacuate a building because of an imminent danger such as spreading of fire and other events.

Building insurance will not cover the damages done to the utilities such as electricity, water pipe, and etc. Sometimes, a power failure can occur due to problem in the main circuit. If the pump is damaged, the pipe will burst and the water will flood the whole basement. Some companies may cover the utilities damages. You will have to ask your insurer to see if they offer coverage against the utilities damages.

Many building insurance provides coverage against the nuclear damages such as radiation. The nuclear damages caused by toxic spills will never be covered by the building insurance. However, the building insurance will cover the losses caused by fire damages that result from nuclear accident. Other types of damages that are not covered by building insurance include explosion of the steam boiler, and breakdown of the machineries. If the government gives a command for you to make changes to the building structure, the building insurance will not compensate for the expenses. You will have to pay for all the expenses yourself.