Does your dwelling insurance protect your home from fire? From burglary? From floods? Your owner-occupied dwelling insurance policy will cover a wide variety of hazards, but not all. Threats like flooding, earthquakes, landslides, and mudslides are exempt from coverage by basic dwelling policies. Here, Muller Insurance explains what our clients across New Jersey and in other states need to know about owner-occupied insurance exemptions and bridging the gap in coverage.

Hazards Exempt from Standard Policies

Standard owner-occupied dwelling insurance does not cover every possible peril. Some hazards cost more for the insurance company to repair than it receives in premiums. Adjusting the cost of premiums to account for these hazards would make them unfairly expensive to people who don’t live in high-risk areas. Rather than cover these hazards in standard policies, most insurance companies choose to offer special policies for homes in high-risk regions, from flood insurance to umbrella policies.

Hazards that are not covered in standard policies include:


Floods are one of the most common – and destructive – risks that could threaten your home, with property losses in the United States averaging about $8 billion every year. Flood damage is especially prevalent in low areas near bodies of water, but as water tables rise, homes are flooding that were never at risk before.


Earthquakes are common around fault lines, like on the West Coast, but they can occur anywhere in the world. Most damage is limited to some broken household items like plates and glassware, but severe earthquakes can threaten the structure of a home.

Landslides and Mudslides

Landslides and mudslides most often occur when heavy rainfall over-saturates the ground, usually right after a drought. The sudden torrent of earth and debris can bury backyards and cause moderate to severe damage to the exteriors of houses. The risk is highest in hilly or mountainous regions, especially those that have been altered by deforestation and mining.

Investing in Supplemental Insurance

At Muller Insurance, we understand the owner-occupied dwelling exemptions and the anxiety they bring along. That’s why we offer a variety of policies to cover your home from specific hazards, such as:

  • Fires and smoke
  • Storm damage from wind, hail, and lightning
  • Theft and vandalism
  • Falling objects, such as tree branches
  • Weight of ice, snow, and sleet
  • Vehicles running into your home
  • Riots or civil commotions

Rather than include these hazards in the standard owner-occupied dwelling insurance policy, insurance companies instead offer special flood insurance, earthquake insurance, and mudslide insurance for people who live in risk regions. If your building is in a high-risk location for any of these hazards, we recommend asking Muller Insurance about expanding your coverage.

Learn More Today

Your owner-occupied dwelling insurance policy can protect your home against a variety of hazards, but it’s crucial to have coverage in place for the exemptions it does not cover. Not only does Muller Insurance offer dwelling insurance throughout the country, but we also offer a variety of supplementary policies so you can be covered in any situation. To find out more about our owner-occupied insurance exemptions and special policies, contact us at 201-659-2403.

Share This Post!