Personal Liability Insurance: What Happens When Someone Gets Hurt on Your Property

Think your homeowners insurance covers everything?

What if the next storm hits and your claim is denied over a technicality?

In the next few minutes, you’ll learn the  10 most common coverage gaps  hiding in standard home insurance policies — and how to fix them before disaster strikes

From floods to mold to business losses, we’ll explain exactly what’s missing and the simple, affordable ways to close each gap.

Standard HO-3 policies do  not  cover flood damage from storm surge, rising rivers, or heavy rainfall that enters at ground level. It’s one of the  most expensive uncovered risks  homeowners face.

Fix it:  Ask your broker for a flood zone determination and quotes from both FEMA’s NFIP and private carriers. Flood insurance can cost  less than $50/month  if you’re in a low-risk zone.

Most policies exclude any kind of ground movement — including earthquakes, sinkholes, or nearby blasting. In New England, we don’t expect it… until it happens.

Fix it: Consider a low-cost earthquake or “difference-in-conditions” endorsement. It’s especially smart if you live near construction or old infrastructure.

Insurance is for  sudden and accidental  damage — not long-term deterioration. That aging roof, rusted boiler, or flaking paint? You’re on your own.

Fix it:  Build a home maintenance calendar. For major systems, ask your broker about an  equipment breakdown endorsement , which acts like a mini home warranty.

If damage is caused intentionally — by you or someone else — it’s not covered. The same goes for liability claims linked to criminal or reckless behavior.

Fix it:  There’s no fix here except prevention. Always act in good faith — and keep your household in check.

Running a business or short-term rental from your home? Standard policies typically  exclude losses  tied to business property, income, or guest liability.

Fix it:  Add a  home-based business endorsement , or consider a  small commercial policy . Hosting on Airbnb or Vrbo? Ask about “host liability” protection.

Many policies cap theft of items like jewelry, collectibles, or electronics at  $1,000–$2,500 total  — far less than the value of a single engagement ring.

Fix it:   Schedule high-value items  individually. It’s affordable and often waives your deductible.

Oil tank leaks — especially underground — can lead to six-figure cleanup bills. Most policies don’t include coverage for environmental damage or personal property loss.

Fix it:  In Massachusetts, request an  oil spill liability endorsement . It’s a low-cost add-on that covers cleanup and testing.

Water that backs up from a drain or sump pump isn’t treated the same as a burst pipe — and it’s  excluded without a rider.

Fix it:  Add a  water backup endorsement . Coverage starts at $5,000 and can go up to $50,000.

It’s a small price to pay compared to the  thousands  it would cost to tear out and replace flooring, drywall, or personal property in a finished basement.

Mold caused by slow leaks, humidity, or flooding usually isn’t covered — and even when it is, it may be limited to a few thousand dollars.

Fix it:  Stay on top of maintenance, keep your home below 55% humidity, and explore a  mold endorsement  if you’re in a damp environment.

Termites, mice, squirrels, and other critters are considered a  preventable issue , not an insurable one.

Fix it:  Invest in annual pest control and seal all access points. Currently, there’s  no endorsement  that meaningfully covers pest damage.

While there are important gaps to be aware of,  standard homeowners insurance still offers essential protection  — covering things like fire, theft, wind damage, and more.

The key is knowing  what’s not covered . By reviewing the exclusions section of your policy and working with a broker to customize the right add-ons, you can  fill those gaps before they become costly surprises .

Now you know the 10 biggest blind spots in your homeowners coverage — and how to fix each one.

But here’s the thing: the  real risk isn’t the storm … it’s discovering too late that your policy ends where the damage begins.

Let’s fix that today.

👉  Call Vargas & Vargas Insurance at 617-298-0655 ,
📱 Text us at  617-409-0329 , or
🌐 Request your  free policy review  at  VargasInsurance.com

We’ll make sure  every “what if” is answered before it becomes a “what now.”