Top 10 Things Most People Think Are Covered By Insurance, But Aren’T

Insurance is designed to provide a safety net, offering financial protection in case of unexpected events. However, many people assume that certain scenarios or items are automatically covered by their insurance policies, only to find out later that they are not. Understanding the limitations of insurance coverage is crucial to avoiding financial surprises. In this blog post, we will discuss the top 10 things that most people think are covered by insurance, but often aren’t.

  • Natural Disasters: While homeowner’s insurance generally covers damage caused by fire, theft, and certain accidents, it usually doesn’t include coverage for natural disasters like earthquakes, floods, and hurricanes. These events may require separate, specialized policies.
  • Home Business Losses: Running a business from home? Your homeowner’s policy might not cover business-related losses, such as equipment damage or liability. Consider a business insurance policy to fill in the gaps.
  • Maintenance and Wear and Tear: Insurance is meant for sudden and accidental events, not for the regular wear and tear that comes with time. Damage due to lack of maintenance or gradual deterioration is typically not covered.
  • Personal Property in a Rental Car: If your personal belongings are stolen from a rental car, your regular auto insurance may not cover the loss. You might need separate renters or homeowners insurance to protect those items.
  • Identity Theft Expenses: While many insurance companies offer identity theft coverage, it’s important to read the fine print. Some policies may only cover expenses like legal fees, not the actual financial losses due to identity theft.
  • Valuables Beyond a Certain Limit: Most homeowner’s policies have limits on coverage for luxury items like jewelry, art, luxury furniture and electronics. If the value of your possessions exceeds these limits, you may need additional coverage.
  • Cosmetic Procedures and Plastic Surgery: Health insurance generally doesn’t cover elective cosmetic procedures or plastic surgery. Such procedures are usually considered optional and excluded from coverage.
  • Mold and Pest Infestations: Mold and pest infestations often result from inadequate maintenance, which is why they’re typically excluded from insurance coverage. Preventive measures and proper maintenance are key here. However, mold that occurs as a result of other types of property damage MAY be covered. Best to check with a mold restoration specialist to confirm!
  • Nuclear Accidents: Damage caused by nuclear accidents or radiation is usually not covered by standard homeowner’s insurance. Specialized policies might be required in areas prone to nuclear risks.
  • Hormone Therapy: While health insurance typically covers a wide range of medical treatments, including prescription medications, hormone therapy can sometimes fall into a gray area. Some hormone therapies, especially those related to gender transition, might not be fully covered by all health insurance plans. It’s important to review your policy’s coverage for specific treatments and consult with your healthcare provider to understand the potential costs involved. In some cases, you may need to explore alternative coverage options or appeal denials to ensure you receive the necessary care. Understanding the nuances of your health insurance coverage when it comes to hormone therapy can help you plan for potential out-of-pocket expenses and make informed decisions about your healthcare journey.


It’s easy to assume that insurance will cover every unexpected event, but the reality is often more complex. Being aware of the limitations of your insurance coverage is crucial to making informed decisions about your financial protection. Always read and understand your policy terms, consider any additional coverage you might need, and be prepared for scenarios that might not be covered. In the end, being proactive and well-informed will go a long way in safeguarding your financial well-being.