Essential insights
- Home insurance doesn’t pick up every tab; exclusions often cover floods, earthquakes, landslides, pests, and mold.
- To bridge these blind spots, homeowners can add endorsements or entirely separate policies for specialty coverage like flood or valuables protection.
- Policy fine print varies by insurer — reviewing your coverage with a qualified agent is a must to know exactly what’s shielded.
Getting to Grips with Insurance Exclusions
Decoding the typical lingo in your homeowner’s policy starts with understanding exclusions. These are the hazards or mishaps your coverage doesn’t back — think floodwaters or seismic shakes. While most plans will throw in a few of these no-go zones, you might be able to snag extra coverage on the side to fill in the blanks. Here, we dive into the usual suspects that home insurance leaves out, with insights from Bankrate’s insurance pros.
Defining Homeowners Insurance Exclusions
Flip open your policy document and hunt for the exclusions clause — that’s your insurance company’s way of listing “not covered” perils and losses. Some of these gaps can be plugged by endorsements (policy add-ons), but no endorsement can whisper a fix for certain losses such as war, nuclear risks, government seizures, normal wear, or intentional damage.
| Exclusion | A risk or loss your homeowner’s coverage explicitly excludes |
| Endorsement | An addition altering your policy terms without requiring a full rewrite or renewal. Often adds financial shield against excluded risks for a fee. |
The Top 11 Home Insurance Blind Spots
1. Floods
Water surging from floods is a notorious no-show under standard home insurance plans. Sewage backflow, sump pump failures, and groundwater sneaking beneath your foundation usually aren’t covered either. Yet, if a tempest tears your rooftop open and rain streams into your living space, that water damage might be on the insurer’s tab. Similarly, sudden, accidental water leaks—like a pipe bursting thanks to a storm’s fallen tree—often qualify for coverage.
2. Earthquakes and Ground Shifts
Similar to flooding, shifty earth — including quakes, landslides, and mudflows — commonly falls outside coverage territory. Insurers shy away from earthquake risks due to potential financial ruin following major seismic events, which can cause sprawling devastation and astronomical claims.
According to USGS data, over 140 million Americans live in counties with notable earthquake risk, yet only about 12% of homeowners carry earthquake insurance, exposing many to significant financial danger.
3. Routine Upkeep and Maintenance
While your insurance is designed to handle sudden accidents, it won’t foot the bill for gradual upkeep. For instance, if mold creeps in slowly or due to neglect, or if general wear and tear erodes your property, coverage won’t kick in. Sometimes, you can buy a mold remediation endorsement, but it’s worth batting ideas back and forth with your agent to explore options.
4. War-related Losses
Damage tied to wartime activities — whether declared wars, civil unrest, or even nuclear conflict — is firmly off the insurance table. These catastrophic events present risks insurers won’t risk covering.
5. Nuclear Hazards
Radiation, nuclear reactions, or radioactive contamination are excluded. Power plants maintain separate liability insurance, so your homeowner’s plan stays out of the nuclear claim game. That said, if a nuclear incident sparks a fire, damage from that fire could be covered.
6. Governmental Interference
If a public authority demolishes or damages your home or belongings, don’t expect a payout from your insurer — government action losses are usually sidelined in homeowner policies.
7. Intentional Damage
Self-inflicted damage to fraudulently claim insurance benefits not only voids your claim but can land you in legal hot water. Similarly, intentional harm to others at your home won’t be shielded by liability coverage.
8. Neglect and Wear
Claims related to neglect — like a dripping sink damaging your cabinetry over time — are likely to be denied. Regular aging or wear-and-tear isn’t something insurance companies sign up to fix.
9. Wind Damage in Storm-Prone Regions
In certain states frequently lashed by hurricanes (think: Alabama, Florida, Louisiana, Mississippi, North Carolina, South Carolina, Texas), wind damage may be carved out of standard policies or slapped with special deductibles. Some policies only exclude wind damage for homes in designated high-risk locales.
Additional Typical Exclusions
- Local Building Codes: Older homes damaged by covered perils may require upgrades to meet current standards. Insurance often doesn’t cover these extra expenses, although an endorsement might.
- Work-from-Home Operations: Standard policies rarely extend to business property or liabilities, so business insurance may be necessary.
- Valuables: Items like jewelry, fine art, or pricey electronics often need extra endorsements for full protection.
- Certain Dog Breeds: Some insurers exclude damage or injury caused by breeds labeled aggressive, such as pit bulls or rottweilers.
- Power Surges: Utility-caused electrical surges might be excluded unless triggered by lightning, which is usually covered.
Seven Tailored Endorsements Worth Considering
Filling the holes in your coverage is achievable through add-ons. Some common endorsements that homeowners often add include:
- Flood Insurance
- Earthquake Insurance
- Scheduled Personal Property Endorsement
- Service Line Coverage (for utility lines)
- Mold Remediation Coverage
- Extended Dwelling Replacement Cost
- Home Business Insurance
Frequently Asked Questions
Why do some damages get left out of home insurance?
Insurers draw lines around risks that are too costly, unpredictable, or outside their financial comfort zone. They want to avoid exposure to losses that could bankrupt them, plus some damages fall under government assistance or require specialized policies.
How can I find out what my policy excludes?
Your policy paperwork spells out exclusions plainly, but given the fine print, chatting with your insurer or agent can offer clarity. Exclusions can vary widely based on your insurer, location, and personal policy specifics — for instance, a damaged roof may be excluded if it’s in poor condition.
Are exclusions standard across all home insurance plans?
While flood and earthquake exclusions are commonly seen industry-wide, every insurer has its own twists. Some companies may cover typical exceptions, while others may add unusual exclusions. Consulting your agent is the best way to understand your unique policy.
What perils typically fall under standard home insurance coverage?
Typical covered threats include fires, smoke damage, lightning strikes, theft, vandalism, falling debris, and vehicle accidents. Precise details, however, will hinge on your policy’s terms and conditions, so a conversation with a licensed agent is always recommended for tailored guidance.