Home insurance (also called homeowners insurance) is designed to protect your house and belongings from sudden, accidental events like fire, theft, or a tree falling on your roof. However, no standard policy covers everything. Insurance companies specifically exclude certain risks to keep premiums affordable and to encourage homeowners to take reasonable preventive steps. Understanding these exclusions can save you from devastating financial surprises when you file a claim.
If you’re looking to ensure your home is properly protected, it’s a good idea to explore home insurance options through Leibel Insurance. Below are the most common things not covered by a typical home insurance policy.
1. Introduction: Understanding Home Insurance Coverage
A standard homeowners policy (HO-3 is the most common form) generally covers the structure of your home, personal belongings, liability, and additional living expenses if your home becomes uninhabitable due to a covered peril. What makes a peril “covered” or “not covered” is spelled out in the policy’s exclusions section. Ignoring these exclusions is one of the biggest mistakes homeowners make. Knowing what’s left out helps you decide whether you need extra protection.
2. Common Exclusions in Home Insurance Policies
Almost every policy contains a list of general exclusions. These usually include:
- Earth movement (earthquakes, sinkholes, landslides)
- Water damage from floods or sewer backup
- War, nuclear hazard, and government action
- Intentional loss
- Neglect or poor maintenance
- Mold, fungus, and rot (unless caused by a covered peril)
- Damage from birds, rodents, insects, or domestic animals
- Business pursuits and professional liability
These exclusions apply even if the damage is expensive or catastrophic.
3. Natural Disasters Often Excluded
Floods Standard policies never cover flood damage, even if a storm surge or heavy rain floods your basement. You need a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurer.
Earthquakes Earthquake damage is excluded nationwide. In high-risk states like California, you can add an earthquake endorsement or buy a separate policy through the California Earthquake Authority or private carriers.
Landslides and Mudflows These are considered “earth movement” and are excluded. Even if heavy rain triggers the slide, it’s still not covered unless you have specific difference-in-conditions (DIC) coverage.
4. Wear and Tear, Maintenance, and Gradual Damage
Insurance is for sudden and accidental losses, not predictable deterioration.
- Mold, rot, rust, and corrosion – Usually excluded unless the mold results directly from a covered water loss (e.g., a burst pipe).
- Plumbing leaks or roof deterioration over time – Slow leaks under a sink or a 25-year-old roof that finally gives out are considered lack of maintenance, not sudden accidents.
5. High-Value Items and Specialty Belongings
Standard policies have low sub-limits (often $1,500–$2,500) for:
- Jewelry (theft)
- Fine art and antiques
- Firearms
- Silverware
- Collectibles (coins, stamps, sports cards)
If your engagement ring is worth $15,000, only a fraction may be covered after a theft. Solution: Schedule these items on a personal articles floater or valuable possessions policy for agreed-value coverage and no deductible.
6. Acts of Negligence or Intentional Damage
- Damage you cause on purpose is never covered.
- Failure to maintain heat in winter leading to frozen pipes, or leaving windows open during a storm, can lead to denied claims under the “neglect” exclusion.
7. Business or Rental Property Risks
- Home-based business equipment – A standard policy may cover only $2,500–$5,000 for business property on premises. Computers, inventory, or professional tools often need a business owners policy (BOP) or in-home business endorsement.
- Tenant-caused damage – If you rent out your entire home or a portion (e.g., Airbnb), damage done by tenants is usually excluded unless you have landlord (DP-3) coverage or a separate rental dwelling policy.
8. Vehicle-Related Damage
Cars, trucks, motorcycles, boats, and aircraft are never covered under a homeowners policy—even if they’re parked in your garage and damaged by fire or a falling tree. You need separate auto, boat, or aircraft insurance for those.
9. How to Fill the Gaps in Coverage
Fortunately, most gaps can be closed:
- Flood insurance (NFIP or private)
- Earthquake endorsement or standalone policy
- Scheduled personal property (for jewelry, art, etc.)
- Sewer backup / water backup endorsement
- Home business or in-home business endorsement
- Umbrella liability policy for extra protection
- Difference-in-conditions (DIC) policy (covers most everything else a standard policy excludes)
Talk to your agent and compare quotes; adding these riders is often surprisingly affordable.
10. Conclusion: Protecting Your Home Beyond Standard Insurance
Standard home insurance is a strong foundation, but it has deliberate holes. Floods, earthquakes, gradual wear and tear, high-value items, business risks, and intentional or negligent acts are routinely excluded. The good news is that almost every major gap can be filled with an endorsement, rider, or separate policy. Review your declarations page every year, ask your agent specifically about the exclusions above, and make sure your coverage matches your actual risks. A few extra dollars in premium today can prevent a six-figure surprise tomorrow.