Home Insurance can protect you from many unexpected losses, but it does not cover everything that can happen to your home or belongings. Understanding what homeowners insurance does not cover is just as important as knowing what your policy does cover. Some losses are excluded because they require different types of insurance, while others may be excluded because they involve maintenance, gradual damage, or intentional acts. For example, a standard homeowners insurance policy generally does not cover flood damage. Earthquake damage is also commonly excluded from standard homeowners policies. These risks may require separate insurance or an additional coverage option, depending on where you live and what your insurer offers. Other situations can be more complicated. A policy may cover sudden and accidental water damage but exclude the cost of fixing a long-term plumbing problem that caused the damage.
Because homeowners insurance policies differ, you should always review your own policy documents to understand the exclusions and limitations that apply to your property.
What Are Homeowners Insurance Exclusions?
Homeowners insurance exclusions are situations, causes of loss, types of property, or circumstances that your policy does not cover. Insurance policies use exclusions to define the limits of coverage. An exclusion can mean that the insurer will not pay for a particular type of loss, even if the damage is significant. Some exclusions are common across many homeowners policies, while others depend on the insurer, policy type, location, and state regulations. This is why you should not assume that something is covered simply because you have homeowners insurance.
Also Read: How Much Homeowners Insurance Do You Need? A Guide to Coverage Limits
Common Things Homeowners Insurance Does Not Cover
Although coverage varies, common homeowners insurance exclusions and limitations can include:
- Flood damage
- Earthquake damage
- Normal wear and tear
- Poor maintenance
- Termite and pest damage
- Intentional damage
- Some types of mold damage
- Water backup, unless additional coverage applies
- Certain high-value belongings beyond policy limits
- Damage caused by certain excluded events
- Some losses involving vacant or unoccupied homes
- Certain business-related property or losses
- Ordinance or law costs beyond available coverage
These are general examples, not a complete list. Your policy may contain additional exclusions or provide coverage through endorsements or separate policies.
1. Flood Damage
One of the most important homeowners insurance exclusions to understand is flood damage. Standard homeowners insurance generally does not cover damage caused by flooding. Flooding can include water entering your home from sources such as overflowing rivers, heavy rainfall, storm surge, or other circumstances that meet the policy definition of flood. This can be confusing because homeowners insurance may cover certain types of water damage, such as a sudden pipe failure, while excluding flood damage.
For example, suppose a pipe inside your home suddenly bursts and causes covered water damage. Your homeowners policy may provide coverage depending on the circumstances. But if rising floodwater enters your home after a major storm, standard homeowners insurance generally would not cover that flood damage. Homeowners in areas with flood risk may need a separate flood insurance policy.
2. Earthquake Damage
Earthquake damage is another common exclusion from standard homeowners insurance policies. Earthquakes can cause structural damage, cracked foundations, damaged walls, broken property, and other losses. Because earthquake coverage is commonly excluded from standard homeowners insurance, homeowners in earthquake-prone areas may consider separate earthquake insurance or an available earthquake endorsement. Coverage options vary by state and insurer. If you live in an area where earthquakes are a concern, ask your insurance company whether earthquake coverage is available and what it would cover.
3. Normal Wear and Tear
Homeowners insurance is generally designed to protect against sudden and unexpected covered losses, not the normal aging of your home. Normal wear and tear is therefore generally not covered. For example, imagine your roof becomes worn after many years of exposure to normal weather conditions. The cost of replacing an old roof simply because it has reached the end of its useful life would generally not be covered as a homeowners insurance claim. However, if a covered event suddenly damages the roof, the resulting damage may be covered depending on the policy. This distinction between gradual deterioration and sudden damage is important.
4. Poor Maintenance
Homeowners are generally responsible for maintaining their property. Insurance is not intended to replace regular home maintenance. Examples of maintenance-related problems can include:
- A roof that has been deteriorating for years
- Rotting wood caused by long-term moisture exposure
- Old plumbing that has not been maintained
- Long-term leaks
- Cracked surfaces caused by gradual deterioration
- Damage caused by neglect
The exact coverage depends on the circumstances and policy wording. A sudden covered loss may still be covered even when an older component of the home is involved, but the insurer may examine whether the damage resulted from a covered event or from a long-term maintenance problem.
5. Termite and Pest Damage
Damage caused by termites, rodents, insects, and other pests is generally not covered by standard homeowners insurance. For example, if termites gradually damage wooden structural components of your home, the cost of treating the infestation and repairing the resulting damage would generally be your responsibility. Insurance companies generally view pest infestations as maintenance issues rather than sudden accidental losses. Regular inspections and preventive maintenance can help homeowners identify these problems before they become expensive.
6. Intentional Damage
Homeowners insurance is generally not intended to cover damage that someone intentionally causes to insured property. For example, deliberately damaging your own home and then filing an insurance claim for the damage would generally not be covered. Intentional acts can also create serious insurance and legal consequences. If property is damaged intentionally by another person, coverage may depend on the circumstances, the relationship between the people involved, and the specific policy language.
7. Mold Damage
Mold coverage can be complicated. Many homeowners policies contain limitations or exclusions related to mold, fungus, or similar conditions. However, the circumstances that caused the mold can matter. For example, mold resulting from long-term moisture or poor maintenance may be treated differently from mold that develops after a sudden covered water loss. Some policies may provide limited mold coverage or allow additional coverage to be purchased through an endorsement. Do not assume that every mold-related loss is either completely covered or completely excluded. Review your policy and ask your insurer how the specific situation would be handled.
8. Sewer or Drain Backup
Damage caused by sewer backups or drain backups may not be covered under a standard homeowners policy unless additional coverage has been added. This can be an important issue because a sewer backup can damage flooring, walls, furniture, appliances, and other property. Some insurers offer water backup coverage as an endorsement or optional coverage. If your home has a basement or is located in an area where sewer backups are a concern, ask your insurer whether this coverage is available.
9. Certain High-Value Belongings
Your homeowners insurance may cover personal belongings, but certain categories of valuable property can have special limits. Examples can include:
- Jewelry
- Fine art
- Collectibles
- Coins
- Precious metals
- Firearms
- Other valuable possessions
The policy may provide some coverage while limiting the amount payable for a particular category or type of loss. For expensive belongings, homeowners may be able to purchase additional coverage or schedule individual items. Keep receipts, photographs, appraisals, and other documentation for valuable possessions when appropriate.
10. Home-Based Business Losses
A standard homeowners policy may provide limited coverage for certain business property, but it generally should not be assumed to provide all the insurance protection needed for a home-based business. If you operate a business from your home, you may need additional business insurance or an endorsement depending on the nature and size of the business. Business property, inventory, equipment, liability, and business interruption can all require careful consideration. Tell your insurer about your home-based business rather than assuming your personal homeowners policy automatically covers it.
11. Certain Vacancy or Unoccupancy Situations
Leaving a home vacant for an extended period can affect insurance coverage. Some homeowners policies contain conditions or limitations related to vacancy or unoccupancy. This can become important if you move out of a home, inherit a property, renovate a house before moving in, or leave a property empty for an extended period. Before leaving your home vacant, contact your insurance company and explain the situation. The insurer may recommend a different policy, endorsement, or other arrangement depending on the circumstances.
12. Ordinance or Law Costs
Building codes and local regulations can change over time. After a major covered loss, rebuilding may require your home to comply with current building codes rather than the codes that existed when the home was originally constructed. Standard homeowners coverage may not fully cover all of these additional costs unless appropriate ordinance or law coverage is included. For example, rebuilding an older home after a major fire could require updated electrical, plumbing, accessibility, structural, or energy-efficiency features. Ask your insurer whether your policy includes ordinance or law coverage and what limits apply.
13. Damage From Certain Animals
Homeowners insurance may not cover all types of animal-related damage. Damage caused by insects, rodents, and other pests is commonly excluded. Damage caused by domestic animals can also be subject to policy exclusions or limitations, depending on the circumstances. Wildlife-related property damage can be complicated as well. Always check your policy before assuming that animal-related damage is covered.
14. Land and Landscaping Losses
Homeowners insurance can provide coverage for certain trees, shrubs, plants, and landscaping under specified circumstances, but it does not mean that all landscaping losses are covered. Coverage can depend on what caused the damage and the specific policy provisions. For example, damage caused by certain excluded events may not be covered. There may also be limits on how much the insurer will pay for trees, plants, or landscaping.
15. Underground Water or Sewer Lines
Damage to underground service lines may not be fully covered by a standard homeowners policy. Some insurers offer service line coverage as an optional endorsement. This can potentially apply to certain underground lines serving the property, depending on the policy. If you own an older property or want additional protection for underground utility lines, ask your insurer whether service line coverage is available.
16. War and Certain Nuclear Risks
Homeowners insurance policies commonly contain exclusions for certain extraordinary risks, including war and nuclear hazards. These exclusions are not usually the main concern for everyday homeowners, but they demonstrate why it is important to understand that homeowners insurance is not an unlimited protection against every possible event. The exact wording and scope of exclusions depend on the policy.
17. Government Action or Confiscation
Insurance policies can contain exclusions related to government action, confiscation, seizure, or similar circumstances. These provisions can be complex and may depend on the circumstances involved. If your property is affected by a government action, do not assume that homeowners insurance will automatically cover the resulting loss.
What About Water Damage?
Water damage is one of the areas where homeowners often become confused about coverage. Not all water damage is treated the same way. For example, a homeowners policy may cover certain sudden and accidental water damage while excluding damage caused by flooding, long-term seepage, or maintenance problems.
Consider these examples:
| Situation | Possible Coverage Treatment |
|---|---|
| Sudden pipe burst | May be covered depending on the policy and circumstances |
| Floodwater entering the home | Generally excluded from standard homeowners insurance |
| Long-term plumbing leak | May be limited or excluded depending on the circumstances |
| Sewer backup | May require additional coverage |
| Roof leak caused by long-term deterioration | May be excluded or limited |
The cause of the water damage is often just as important as the damage itself.
What About Roof Damage?
Roof coverage depends on the cause, condition of the roof, policy language, and other circumstances. A sudden covered event, such as certain storm damage, may be covered. However, normal aging, deterioration, poor maintenance, or certain excluded causes may not be covered. Roof claims can also involve depreciation, deductibles, coverage limits, and special policy provisions. If your roof is older, ask your insurer how your policy handles roof damage and whether any special limitations apply.
What About Foundation Problems?
Foundation damage can have many different causes, and the cause matters when determining insurance coverage. Damage caused by certain covered events may be eligible for coverage, while foundation problems caused by settling, earth movement, poor construction, long-term moisture, or other excluded causes may not be covered. Because foundation claims can be complicated and expensive, homeowners should review the policy carefully and obtain professional evaluations when appropriate.
What About Earth Movement?
Standard homeowners insurance commonly excludes certain forms of earth movement. Depending on the policy, this can include events such as earthquakes, landslides, mudslides, and other forms of ground movement. The exact definitions and exclusions can vary. Some types of coverage may be available separately or through endorsements, depending on where you live.
Can an Excluded Loss Ever Have Some Coverage?
Yes, depending on the circumstances. An exclusion does not necessarily mean that every part of an incident is automatically excluded. For example, a policy may exclude flood damage but provide coverage for a separate covered loss that occurs afterward. Likewise, an insurer may cover sudden damage caused by a covered event while excluding the cost of correcting the underlying maintenance problem. This is why it is important to identify the exact cause of damage rather than simply asking whether a general category, such as “water damage,” is covered.
How Endorsements Can Add Coverage
An endorsement is an addition or modification to an insurance policy that can change the coverage provided by the standard policy. Depending on the insurer and location, endorsements may provide additional protection for risks or property that have limited coverage under a standard homeowners policy.
Examples can include:
- Water backup coverage
- Scheduled personal property
- Service line coverage
- Identity theft coverage
- Equipment breakdown coverage
- Additional replacement cost protection
- Ordinance or law coverage
Not every endorsement is available from every insurer, and coverage terms vary.
What Is Not Covered by Homeowners Insurance vs. What Needs a Separate Policy?
Some risks that are excluded from standard homeowners insurance can be insured through a separate policy.
| Risk | Standard Homeowners Policy | Possible Additional Protection |
|---|---|---|
| Flood | Generally not covered | Separate flood insurance |
| Earthquake | Commonly excluded | Earthquake insurance or available endorsement |
| Sewer backup | May be excluded | Water backup endorsement |
| High-value jewelry | May have special limits | Scheduled personal property coverage |
| Home-based business | May have limited coverage | Business insurance or endorsement |
Availability depends on your location, insurer, property, and individual circumstances.
How to Find Exclusions in Your Homeowners Policy
You do not need to read your entire insurance policy at once to start understanding its exclusions. Begin by looking for sections titled:
- Exclusions
- What Is Not Covered
- Losses Not Insured
- Additional Coverage
- Conditions
- Special Limits
- Endorsements
Your declarations page can also help you identify the coverage and endorsements attached to your policy. Remember that the declarations page is usually a summary. The complete policy wording contains the details that determine how coverage applies.
Questions to Ask Your Insurance Company
If you are unsure about exclusions, ask your insurer specific questions rather than simply asking, “Is my house covered?”
For example:
- Is flood damage covered?
- Is earthquake damage covered?
- Do I have water backup coverage?
- How is roof damage handled?
- Are there special limits on my jewelry?
- How does the policy handle mold?
- Are there exclusions related to vacancy?
- Do I have ordinance or law coverage?
- Are underground service lines covered?
- Does my home-based business have enough coverage?
Getting answers before a loss can help you identify coverage gaps while you still have time to address them.
How to Protect Yourself From Coverage Gaps
You cannot eliminate every insurance exclusion, but you can take steps to understand and manage your risks.
Review Your Policy Every Year
Insurance needs can change over time. Review your policy when it renews and after major changes to your home or finances.
Consider Your Local Risks
Think about the risks that are particularly relevant where you live. For example, homeowners in flood-prone areas may need to consider flood insurance, while homeowners in earthquake-prone areas may want to investigate earthquake coverage.
Document Your Belongings
Create a home inventory with photographs, receipts, and other useful information. This can make it easier to document your property after a covered loss.
Maintain Your Home
Regular maintenance can help reduce problems that homeowners insurance generally does not cover, such as deterioration, pest damage, and long-term leaks.
Ask About Endorsements
If you discover a coverage gap, ask your insurer whether an endorsement or separate policy is available.
Common Mistakes Homeowners Make
Assuming Everything Is Covered
Having homeowners insurance does not mean every possible cause of damage is insured.
Confusing Flooding With Other Water Damage
Flood damage and sudden plumbing-related water damage can be treated differently under an insurance policy.
Ignoring Special Limits
Your policy may provide coverage for certain belongings but impose specific limits on particular categories.
Failing to Maintain the Property
Insurance generally does not replace normal maintenance and repairs.
Not Reporting Major Changes
Renovations, home businesses, extended vacancy, and other significant changes can affect your insurance needs.
Only Looking at the Premium
A cheaper policy may have different deductibles, exclusions, limits, or endorsements. Compare the coverage details rather than looking only at the price.
Final Thoughts
Knowing what homeowners insurance does not cover can be just as important as knowing what it does cover. Common exclusions can include flood damage, earthquake damage, normal wear and tear, maintenance problems, pest infestations, certain types of mold, and other specific risks. Some of these risks may be insurable through a separate policy or additional coverage, while others may remain the homeowner’s responsibility.
The important thing is not to assume that every loss is covered simply because you have homeowners insurance. Review your policy carefully, pay attention to exclusions and special limits, consider the risks associated with your location, and ask your insurer about coverage options that may help address important gaps. Insurance rules and coverage vary by state, insurer, and policy. Your policy documents are the best source for determining what is actually covered in your situation.
PolicyHelpUSA provides educational information to help U.S. consumers better understand insurance. Insurance terms, coverage, exclusions, deductibles, requirements, and availability can vary by state and policy, so always review your own policy documents and consult a licensed insurance professional when you need advice about your specific coverage.
Frequently Asked Questions
What is the biggest thing homeowners insurance does not cover?
There is no single exclusion that is most important for every homeowner. Flood damage and earthquake damage are two major risks commonly excluded from standard homeowners policies, but the importance depends on your location and circumstances.
Does homeowners insurance cover flooding?
Standard homeowners insurance generally does not cover flood damage. Separate flood insurance may be available for eligible properties.
Does homeowners insurance cover earthquakes?
Earthquake damage is commonly excluded from standard homeowners insurance. Separate earthquake coverage may be available depending on your location and insurer.
Does homeowners insurance cover normal wear and tear?
Generally, no. Homeowners insurance is generally designed for covered sudden and accidental losses rather than normal aging and deterioration.
Does homeowners insurance cover termites?
Termite damage is generally not covered by standard homeowners insurance because infestations and resulting damage are typically considered maintenance-related problems.
Does homeowners insurance cover mold?
Mold coverage depends on the cause of the mold, the policy language, and any applicable limitations or endorsements. Some mold-related losses may have limited coverage.
Does homeowners insurance cover sewer backup?
Standard coverage may not cover sewer or drain backup. Some insurers offer separate water backup coverage through an endorsement.
Does homeowners insurance cover a home business?
A standard homeowners policy may provide limited business-related coverage, but it should not automatically be assumed to provide all the protection a home-based business needs.
Can I add coverage for something my homeowners policy excludes?
Sometimes. Depending on the risk, an insurer may offer an endorsement or a separate insurance policy. Availability varies by insurer and state.
How can I know what my homeowners insurance excludes?
Review the exclusions, conditions, special limits, and endorsements in your policy. If something is unclear, ask your insurance company or a licensed insurance professional to explain how the policy applies.
