Homeowners insurance exclusions

Even the most robust home insurance policy won’t cover everything. All home insurance policies have some exclusions, and knowing what your policy doesn’t cover is just as important as knowing what is covered. Bankrate’s insurance editorial team, which includes licensed agents, put together this guide on what you need to know about home insurance exclusions.  

What are home insurance exclusions?

If you flip through your home insurance contract, you’ll find the exclusions section — the part of your policy that details which perils and financial losses your insurance company will not cover. You can protect yourself against some policy exclusions by purchasing coverage endorsements. However, there isn’t an endorsement for every single exclusion; some losses, like those due to war, nuclear hazard, government action, wear and tear and intentional losses, cannot be covered by a home insurance policy.

11 Kinds of damage home insurance does not cover 

1. Floods

Although floods are the most common natural disaster in the country, flood damage is excluded from standard home insurance policies. Home insurance also will not cover floods caused by sewer backup, sump failure or water that seeps into your home’s foundation. However, if a windstorm tears a hole in your roof and rain pours into your house through the damaged roof, the flood damage incurred would be covered by your home insurance policy. Additionally, your policy can cover some sudden and accidental water damage depending on the cause of loss. If a pipe suddenly bursts because a tree fell on your home in a storm, the water damage may be covered by your policy.

2. Earthquakes and earth movement

Just like flood damage, damage caused by earth movement is a common homeowners insurance exclusion. The excluded causes of loss typically include earthquakes, landslides, mine subsidence and mudflows. Including earthquakes in a home insurance policy could threaten an insurer’s financial solvency. Earthquake damage can be widespread and catastrophic, and after a bad quake, claims may be too expensive for insurance companies to handle.  

3. Maintenance

Home insurance is designed to help with sudden, accidental damage. While keeping up with maintenance is a great way to help prevent that, your home insurance company won’t usually help you pay for it. To finance home maintenance projects, you may want to consider setting aside a portion of money. If you have concerns about being able to afford the cost of keeping up your home, you can also explore purchasing a home warranty.

4. Pests

Almost all homeowners policies exclude infestations of vermin, including insects and rodents. Whether your home is affected by termites, bedbugs or mice, your home insurance coverage is not likely to cover the eradication and remediation costs. However, you may have some coverage if pests trigger a covered loss, like if mice chew through some wiring that sparks an electric fire. The damage from that fire could be covered by your home insurance policy. 

5. Mold

In most cases, mold is a home insurance exclusion unless the mold resulted from a covered peril. For example, if a storm breaks your window and the resulting water damage causes mold, you may have coverage for the mold remediation. But for mold that develops slowly or for which you cannot identify a cause, you will likely need to pay for any necessary treatment and repairs out of pocket. Some companies may offer an endorsement for mold remediation, so you may want to speak with your insurance agent to see if this is an option for you.

6. War 

Losses due to war are not included in a home insurance policy. Like earthquake damage, wartime losses can be catastrophic for an insurer. This pertains to declared war, undeclared war, civil war and nuclear war.   

7. Nuclear hazard

Nuclear radiation, reaction or radioactive contamination is not covered by a home insurance policy. Nuclear power companies have their own liability insurance, so your home insurance policy wouldn’t be involved in any kind of claim payout for homes in the hazard zone. That said, if the nuclear event causes a fire, you may have some coverage for the resulting damage. 

8. Government action

If the government or a public authority damages your personal property or your home’s physical structure, you won’t be able to file a home insurance claim for the loss. 

9. Intentional loss

If you intentionally damage your home in order to file an insurance claim, it not only won’t be covered but you could be prosecuted for insurance fraud. The same principle applies to the liability portion of your policy: if you host a party and intentionally punch a guest in the face, your liability insurance won’t help you if you’re sued by your injured guest. 

10. Neglect

A home insurance company will likely deny your claim if the damage in question stems from neglect. If your sink has been leaking for a while and that leak damages your kitchen counters, home insurance won’t help you out. This also applies to regular wear and tear. If the wood on your back deck needs replacing simply because of age, you won’t be able to file a home insurance claim for it. 

11. Wind damage in high-risk storm states

Wind damage may be excluded from home insurance in some areas. In hurricane-prone states like Alabama, Florida, Louisiana, Mississippi, North Carolina, South Carolina and Texas, wind may not be a covered policy peril, depending on how the policy is written. In Texas, for example, wind is only excluded for homes in designated high-risk counties.   

Other common home insurance exclusions

The list above is by no means a complete list of all property insurance exclusions. The following are also usually excluded from most home insurance policies:  

• Aggressive dog breeds: Some dog breeds like German shepherds, pit bulls, rottweilers and wild hybrids are seen as higher-risk and won’t be covered by your liability insurance. 
• Home-based businesses: Most home insurance policies only cover up to a certain amount of home business property, around $2,500. Similarly, the liability portion of your policy likely won’t apply if a client is injured when visiting your home business. 
• Full cost of high-value items: Certain valuables, like jewelry and antiques, may not be covered for their full value under your home insurance policy. For example, most home insurance policies only cover jewelry up to $1,500.  
• Local building ordinance or law: If your home is damaged in a covered peril, needs extensive repairs but isn’t up to local building codes, insurance likely won’t help you with the added cost of getting your home up to newer building standards. 
• Power surges caused by your utility companies: Your home insurance policy does not pay to replace or repair the components inside your electronics if they were damaged from an artificially generated (non-lightning) power surge. 

7 Endorsements to consider adding to your home insurance policy

Some risks may be excluded from your home insurance policy, but that does not mean you can’t get insurance for them. For broader financial protection, you can purchase endorsements to fill in any coverage gaps. 

• Flood insurance 
• Earthquake insurance 
• Scheduled personal property endorsement
• Home business endorsement 
• Difference in conditions endorsement
• Sewer backup endorsement
• Service line coverage   

Frequently asked questions

• Why are some damages excluded from home insurance?
  

  Homeowners insurance is designed to protect your finances against sudden and accidental damage, like storm damage or someone falling and hurting themselves. Certain exclusions fall outside the spectrum of sudden or accidental. Pests and mold, for example, typically take a period of time to develop into a problem. Other exclusions, like floods or earthquakes, can cause such catastrophic damage that they warrant their own rating metrics separate from a home insurance policy. Excluding these losses under standard home insurance policies helps insurance companies maintain a sustainable risk tolerance and may help them offer cheaper standard coverage.

• How do I know what my policy excludes?
  

  The exclusions of your insurance policy should be in your paperwork. You can also talk to your company or agent to get a better sense of what is excluded. Although there are often standard homeowners insurance exclusions, and many exclusions depend on the type of policy you have, your exclusions could also depend on your insurance company, your location and your specific situation. For example, some home policies can be amended to exclude coverage for your roof if it is in especially poor shape.

• Do all home insurance policies have the same exclusions?
  

  Many home insurance policies have common exclusions, including flood and earthquake coverage. However, all companies are different. Some companies may include typically excluded coverages. On the other hand, some companies could have exclusions that are relatively rare in the industry. Talking to your agent about your specific policy could help you better understand what your policy does and does not cover.

• What are some of the common perils covered in a standard home insurance policy?
  

  Some of the common perils covered include fire, smoke, lightning, theft, falling objects, vandalism and damage from a vehicle. However, each home insurance policy is different, so consider speaking with a licensed agent.