All-risk policies are also subject to exclusions, but they will clearly specify anything that is not covered. Homeowner's insurance seldom covers earthquake and flood damage, for example, and in some locations the insurance won't cover wind damage either. Flood insurance is a federal program, and if you live in a flood plain you're required to have it, says the Consumers Union. Ask the bank that holds your mortgage if you are required to buy federally backed flood insurance. Don't get confused about water damage, however.
Flood insurance is for damage from a rising body of water, such as a river or an ocean.
But damage from burst pipes or a leaky roof is covered by most homeowner s policies. As for the contents of the house, there are usually limits on personal-property coverage. Most policies will insure the contents of your home for 50 to 70 percent of the total coverage, but you can buy more. Most policies also place caps on insuring certain valuables, such as jewelry, cash, and furs. To insure them, you will need a rider.