Homeowners insurance provides important protection, but it doesn’t cover everything. Many homeowners are surprised to learn that some common types of damage are excluded from standard policies.
This guide explains what homeowners insurance usually does not cover, why these exclusions exist, and what homeowners should be aware of before something goes wrong.
Flood Damage
Flood damage is one of the most common exclusions in homeowners insurance. Damage caused by rising water — such as heavy rain, storm surge, or overflowing rivers — is typically not covered.
Flood insurance usually requires a separate policy.
Earthquake Damage
Earthquake damage is also commonly excluded from standard homeowners policies. This includes damage caused by ground shaking, fault movement, or earth settling related to seismic activity.
In areas where earthquakes are a concern, separate coverage may be available.
Wear and Tear
Homeowners insurance is designed to cover sudden and accidental damage, not gradual deterioration. Damage caused by aging materials, rust, rot, or general wear and tear is usually not covered.
Routine maintenance is considered the homeowner’s responsibility.
Neglect or Poor Maintenance
If damage occurs because a known problem was ignored — such as a long-term leak that was never repaired — insurance coverage may be denied.
Policies generally expect homeowners to take reasonable steps to maintain their property.
Pest and Animal Damage
Damage caused by pests such as termites, rodents, or insects is typically excluded from homeowners insurance. This type of damage is considered preventable through regular maintenance.
Intentional Damage
Damage caused intentionally by the homeowner is not covered. Insurance is designed to protect against unexpected losses, not deliberate actions.
A Real-Life Example
Imagine heavy rain causes a nearby river to overflow, flooding your basement. Even though the damage is sudden, it would likely not be covered under a standard homeowners insurance policy because floods are excluded.
This is why understanding exclusions ahead of time is so important.
Key Takeaways
- Homeowners insurance does not cover every type of damage
- Floods and earthquakes usually require separate policies
- Wear and tear and neglect are not covered
- Understanding exclusions helps avoid surprises
Knowing what homeowners insurance does not cover is just as important as knowing what it does. A clear understanding can help homeowners make informed decisions and prepare for potential risks.