Homeowner’s Insurance “Gotchas”

When it comes to owning a home, few things sound as mundane—but are as vital—as homeowner’s insurance. Yet beneath the dense fine print and cheerful promises of “peace of mind,” there are clauses, percentages, and exclusions that can quietly cost homeowners thousands. This episode of Selling Greenville dives into the most common (and sneakiest) homeowner’s insurance gotchas that Upstate residents need to know before the next storm or surprise claim hits.

Understanding Homeowner’s Insurance “Gotchas”

The world of homeowner’s insurance is changing fast, and not always in favor of the policyholder. Carriers—like any for-profit business—exist to make money. That means when risk rises, they adjust their policies to protect their bottom line. Unfortunately, that often translates to less coverage, higher deductibles, and more exclusions for the homeowner.

The most important first step? Always read your policy. Every line. Every clause. The language is deliberate, and the smallest wording tweak can shift thousands of dollars of responsibility onto you. Even those who’ve read their policy before might find surprises—some good (unexpected coverage) and some not-so-good (new exclusions).

The Rise of Percentage-Based Deductibles

One of the biggest homeowner’s insurance gotchas emerging in recent years involves the percent-based deductible. Traditionally, homeowners paid a flat deductible—$500, $1,000, maybe $2,000. But now, many insurance companies are replacing those flat deductibles with percentages tied to your home’s value.

For example, if your home is valued at $500,000 and you have a 2% deductible, you’ll need to cover $10,000 of the repair costs before your insurance even begins to contribute.

What’s more alarming is that these percentage-based deductibles—once limited to coastal storm zones—are now showing up inland. The Upstate, for instance, has seen a sharp rise in severe weather: hail, wind, and even tropical remnants from distant storms. Many carriers are quietly slipping these policies into contracts, even for non-coastal properties.

The takeaway: don’t assume you’re safe from percentage deductibles just because you’re not near the ocean.

The Roof Clause Trap

Roof coverage has also changed dramatically, especially for homes with three-tab composition shingles. These older, flat-style shingles may look economical, but they’re notorious for failing under strong wind or hail.

Carriers have taken notice. Many are now excluding or reducing coverage for homes with three-tab shingles, meaning if your roof sustains storm damage, your claim could be denied—or heavily reduced—based solely on the roofing material.

The smarter move? Upgrade to architectural shingles—the more durable, longer-lasting type that can withstand Upstate weather. Yes, the initial cost is higher, but the long-term insurance protection (and resale value) make it well worth it.

Hidden Coverage Gems

Not every change in homeowner’s insurance is bad news. Some carriers have begun adding property coverage. This allows homeowners to take preventive measures—like boarding up windows during potential civil unrest or clearing ice buildup from a roof at risk of collapse—and be reimbursed for those costs.

However, as with all things insurance, the devil is in the details. Coverage may only apply to certain scenarios, and the language is often vague. The safest move is to check directly with your insurer before assuming any preventive action will be covered.

When “Helpful” Roof Maintenance Backfires

Here’s an ironic twist: sometimes, trying to protect your home can void your protection entirely.

Roof-cleaning services, algae removal, or so-called “roof coating” sprays may seem like smart maintenance—but many insurance companies see these actions as tampering. Once the roof has been pressure-washed, chemically treated, or otherwise altered, insurers may refuse future claims, arguing that the surface no longer meets their coverage definition of a “standard roof.”

In short: maintain your home, but don’t overdo it. Keep it clean and trimmed, but avoid aggressive treatments that could be seen as interference.

The Flooding (and Earthquake) Myth

One of the most expensive misunderstandings in real estate is assuming that homeowner’s insurance covers floods or earthquakes. It doesn’t.

If a creek overflows into your home, or an earthquake cracks your foundation, you’re out of luck—unless you have a separate flood or earthquake policy, typically through FEMA or a private carrier.

Flooding, in particular, is a growing risk in the Upstate. Heavy rains and poor drainage have caused numerous flash floods in recent years. Even homes not listed in FEMA’s official floodplains have faced damage. Reviewing your flood exposure and considering supplemental coverage could save you from a financial nightmare.

Civil Unrest, War, and Other “Gray Area” Exclusions

Another overlooked area involves social and political unrest. Damage caused by riots, protests, or acts of terrorism may or may not be covered, depending on your policy’s definitions.

Insurance companies often include exclusions for “insurrection,” “terrorism,” or “acts of war.” The trouble? Those definitions are subjective. If your property is damaged during an event that your insurer classifies under one of those terms, you might find yourself footing the bill.

The key is to know the limits of your coverage before something happens—and to take protective measures that align with your policy.

The Vacancy Clause Surprise

One final homeowner’s insurance gotcha: vacancy restrictions.

If your home sits vacant for even a couple of months—say, you’re traveling abroad for the summer or in the process of flipping a property—your standard homeowner’s policy may no longer apply. Many carriers include clauses that void coverage if a property remains unoccupied for 60 days or more.

That means if damage occurs while you’re away, your claim could be denied simply because no one was home.

If you plan to leave your home vacant or use it as a rental, speak to your insurance agent about converting your policy to a vacant property or landlord policy. It might cost more, but it ensures you’re protected no matter what.

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Bottom Line

Insurance is one of those things most people buy and forget about—until they need it. But in a world of shifting weather patterns, rising claim costs, and profit-driven carriers, ignorance can be expensive.

Homeowners who stay proactive—by reading their policies, understanding exclusions, and regularly talking with a trusted insurance agent—will avoid most of these “gotchas.” Those who don’t risk being blindsided by fine print when they can least afford it.

The smartest move? Review your homeowner’s insurance today. It might just save you from tomorrow’s financial storm.

Ien Araneta

Journal & Podcast Editor | Selling Greenville