Protecting your home is more than just holding a homeowners policy—it’s understanding what’s not covered. At Sharp Family Insurance Agency in Hot Springs, Arkansas, we’ve helped countless local residents, including in Hot Springs Village, avoid unexpected gaps in coverage.
What Are Policy Exclusions?
Policy exclusions are the risks and causes of loss that your homeowners insurance explicitly does not cover. These exclusions help insurers manage risk, but they can leave homeowners exposed if you’re unaware of them.
Common Home Insurance Exclusions for Hot Springs, AR Homeowners
At Sharp Family Insurance Agency, we work with local homeowners to help identify these key coverage gaps:
Flood Damage
Standard homeowners policies do not cover flood damage, including surface water from heavy rains, overflowing creeks, or groundwater infiltration. Flash flooding and overland water rise can occur even outside mapped flood zones.
Solution: Consider a separate flood insurance policy through the NFIP or a private provider.
Earth Movement (Earthquakes, Sinkholes, Landslides)
Arkansas may not be known for earthquakes, but sinkholes and foundation shifts from unstable soil can still occur. These events are typically excluded.
Solution: Explore earthquake or foundation-movement endorsements.
Wear-and-Tear or Neglect
Damage that develops slowly over time—like aging roof materials, gradual leaks, mold from long-term moisture, or deterioration due to pests—is excluded because it’s considered foreseeable and preventable.
Solution: Stay proactive with routine maintenance—such as roof inspections, plumbing checks, pest control, and HVAC servicing, and document your upkeep for proof of care.
Sewer Backup and Sump Pump Overflow
Losses from sewer backups, drain clogs, and sump pump failures are generally excluded under a standard policy.
Solution: Add a sewer‑backup endorsement to protect against these incidents.
Wind and Hail Deductibles
While wind and hail damage are typically covered in Arkansas, these claims may be subject to separate deductibles—often a percentage of dwelling coverage.
Solution: Review your deductible structure and ask your agent about options to minimize your out‑of‑pocket costs.
Code or Ordinance Upgrades
If your home must be rebuilt to meet current building codes after damage, the extra cost may not be covered.
Solution: Add ordinance or law coverage for properties over 20 years old.
Home‑Based Business Activities
Insurance for personal liability or property damage related to business activities at home is not included in a standard homeowners policy.
Solution: Talk to us about a home business endorsement or commercial insurance.
High‑Value Personal Property Limits
Items like jewelry, art, firearms, and collectibles often have sub-limits—commonly $1,000–$2,500.
Solution: Consider scheduled riders to ensure full replacement value.
Intentional or Illegal Acts
Damage caused deliberately by a resident—or resulting from criminal activity—is excluded.
War, Terrorism, and Nuclear Incidents
Extreme events such as war or nuclear accidents are excluded in almost all homeowner policies.
Why These Matter in Hot Springs and Hot Springs Village
In our region, homeowners may face unique circumstances:
- Flash flooding associated with Ouachita Mountains runoff
- Aging sewer infrastructure leading to backup risks
- Foundation concerns due to Arkansas soils and drainage patterns
- Strong storms with hail or high wind
- Code changes if renovating historic or older properties
Without addressing exclusions, homeowners could face major out‑of‑pocket expenses.
How to Close the Coverage Gaps
If your policy includes one or more of these exclusions, Sharp Family Insurance Agency can guide you on additional coverage options:
- Separate flood insurance — critical even when you’re in a low-risk zone
- Sewer backup endorsements — especially important for homes near older drainage systems
- Earthquake/foundation‑movement endorsements — useful in older neighborhoods or areas prone to settling
- Scheduled personal property riders — for items like valuable art or jewelry
- Ordinance or law coverage — for newer construction mandates
- Home business endorsements — for liability and property exposure tied to work-from-home activity
Why Choose Sharp Family Insurance Agency?
Located locally in Hot Springs, with clients across Hot Springs Village and surrounding communities, we understand what local risks matter most. As an independent agency, we offer:
- Personalized coverage reviews to identify risks
- Competitive quotes from top-rated carriers
- Help with customizing endorsements or specialty policies
- Ongoing support and annual reviews as your property or needs evolve
- Fast claims support and responsive service
Don’t wait until a claim reveals a coverage gap. Understanding exclusions today means security tomorrow. Contact Sharp Family Insurance Agency to ensure your homeowners insurance aligns with your real risks in Hot Springs and Hot Springs Village.
Sharp Family Insurance
www.sharpfamilyins.com/contact/
(501) 547-9474
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