What Does Homeowners Insurance Not Cover?
If you own a home, you likely have homeowners insurance — but here’s the uncomfortable truth:
Most homeowners don’t actually know what their policy doesn’t cover.
And when disaster strikes, that’s when exclusions matter most.
In this comprehensive guide, we’ll break down:
- What homeowners insurance typically does NOT cover
- The most misunderstood exclusions
- Situations where claims get denied
- Optional add-ons you may need
- How to avoid costly coverage gaps
- FAQs homeowners search before filing a claim
This guide is written to go deeper than the average insurance blog — so you can protect your biggest investment properly.
First: What Is Homeowners Insurance Designed to Cover?
A standard homeowners insurance policy (often called an HO-3 policy in the U.S.) typically includes:
- Dwelling coverage (structure)
- Other structures (garage, fence)
- Personal property
- Liability protection
- Loss of use / additional living expenses
Policies are usually standardized through the Insurance Services Office (ISO), though coverage details vary by insurer.
But while coverage sounds broad, exclusions are where the fine print lives.
15 Things Homeowners Insurance Does NOT Cover
Let’s examine the most common exclusions.
1. Flood Damage
This is the #1 misunderstood exclusion.
Standard homeowners insurance does NOT cover flood damage from:
- Heavy rain
- Storm surge
- Overflowing rivers
- Flash floods
- Coastal flooding
Flood coverage must be purchased separately, often through the Federal Emergency Management Agency (FEMA) via the National Flood Insurance Program (NFIP).
If you live in a flood-prone area, this coverage is essential.
2. Earthquakes & Ground Movement
Damage from:
- Earthquakes
- Landslides
- Sinkholes (in many states)
- Mudflows
- Earth movement
… is typically excluded.
Earthquake insurance must be added as an endorsement or purchased separately.
Even in states that rarely experience quakes, minor tremors can cause foundation damage not covered under standard policies.
3. Wear and Tear
Insurance covers sudden and accidental damage — not maintenance issues.
Not covered:
- Old roof deterioration
- Plumbing corrosion
- Gradual water leaks
- Cracked foundation from age
If damage happens over time, it’s considered a maintenance issue, not an insurable event.
4. Pest and Insect Damage
Damage from:
- Termites
- Rodents
- Carpenter ants
- Bed bugs
… is usually excluded.
Why? Because insurers consider pest prevention part of regular home maintenance.
5. Mold (In Many Situations)
Mold is tricky.
If mold results from a covered peril (like a burst pipe), it may be partially covered.
But mold caused by:
- Long-term leaks
- High humidity
- Poor ventilation
… is typically excluded or capped at a low limit.
6. Sewer Backup (Without Endorsement)
Standard policies often exclude water backup from:
- Sump pump failure
- Sewer system backups
- Drain overflows
You usually need a “water backup” endorsement for protection.
This is one of the most affordable add-ons and often worth it.
7. Intentional Damage
If you intentionally damage your home, insurance won’t cover it.
Claims may also be denied in cases of fraud or misrepresentation.
8. Business Activities at Home
Running a business from home?
Standard homeowners insurance does NOT cover:
- Business inventory
- Client injuries
- Business equipment losses
If you operate a home business, consider:
- Home business endorsement
- Commercial policy
9. High-Value Items Beyond Policy Limits
Policies include limits for:
- Jewelry
- Watches
- Art
- Firearms
- Collectibles
- Cash
Example:
Jewelry theft may be capped at $1,500–$2,500.
If you own expensive items, you need scheduled personal property coverage.
10. Certain Dog Breeds
Some insurers exclude liability coverage for certain dog breeds.
If your dog bites someone and your breed is excluded, you may not be covered.
Each insurer has different underwriting rules.
11. War and Nuclear Hazards
Damage caused by:
- War
- Terrorism (in some cases)
- Nuclear events
… is typically excluded.
12. Government Seizure or Action
If the government seizes or demolishes your property, homeowners insurance generally won’t cover it.
13. Vacant Homes
If your home is vacant for 30–60 days (varies by insurer), coverage may be reduced or voided.
Vacant home insurance may be required.
14. Negligence or Failure to Maintain Property
Claims may be denied if:
- You ignored a leaking roof for months
- You failed to repair known structural damage
- You didn’t maintain heating during freezing temperatures
Insurance expects homeowners to take reasonable care.
15. Cosmetic Damage (In Some Cases)
Some insurers exclude cosmetic damage to:
- Roofing
- Siding
- Exterior materials
If damage doesn’t affect function, it may not be covered.
Common Claim Denial Scenarios
Homeowners often get claims denied due to:
- Filing too late
- Incomplete documentation
- Pre-existing damage
- Excluded peril
- Policy lapse
Understanding exclusions before filing can save stress and legal battles.
Optional Coverages You May Need
To fill coverage gaps, consider:
Flood Insurance
Especially if you’re in a moderate-to-high-risk flood zone.
Earthquake Insurance
Important in seismic regions.
Water Backup Endorsement
Protects against sewer and sump pump backups.
Scheduled Personal Property
For high-value belongings.
Ordinance or Law Coverage
Covers costs to rebuild to updated building codes.
What About Named Perils vs Open Perils?
Most modern policies are:
- Open-peril (dwelling)
- Named-peril (personal property)
This means:
Your home structure is covered unless specifically excluded.
Your belongings are covered only for named causes.
Always review your declarations page carefully.
How to Check What Your Policy Doesn’t Cover
Follow this 5-step review process:
- Read the exclusions section
- Review coverage limits
- Check endorsements
- Confirm deductibles
- Ask your agent for a coverage gap analysis
Never assume something is covered.
State-Specific Variations
Coverage exclusions vary by state due to:
- Climate risks
- Natural disasters
- Insurance regulations
For example:
- Coastal states often require separate windstorm policies.
- California residents often need separate earthquake policies.
Frequently Asked Questions
Does homeowners insurance cover foundation cracks?
Usually not if caused by settling or earth movement.
Does it cover roof leaks?
Only if caused by a covered peril like a storm — not wear and tear.
Is water damage covered?
It depends on the source:
- Sudden burst pipe? Likely covered.
- Floodwater from outside? Not covered.
Does homeowners insurance cover HVAC systems?
Yes, if damaged by a covered peril — not age or neglect.
Final Thoughts: Protecting Yourself from Coverage Gaps
Homeowners insurance is powerful — but it is not unlimited protection.
The biggest financial mistakes homeowners make:
- Assuming flood is covered
- Skipping endorsements
- Ignoring exclusions
- Underinsuring personal property
Your home is likely your largest asset.
Review your policy annually.
Update coverage after renovations.
Add endorsements where needed.
And most importantly — understand what is NOT covered before you need it.