What Does Homeowners Insurance Not Cover?

Homeowners insurance does not cover floods, earthquakes, normal wear and tear, pest damage, or intentional acts, among other exclusions. Every policy has limits, and understanding what is excluded is essential to avoiding a devastating surprise at claim time.

Flood damage

Standard homeowners policies exclude flood damage — water that enters your home from outside due to rising water, storm surge, or overflowing rivers. This is one of the most common and costly gaps in homeowners coverage. Flood insurance is available separately through the National Flood Insurance Program (NFIP) or private insurers. Even if you are not in a designated flood zone, flooding can happen anywhere, and a separate policy is the only way to be covered.

Earthquakes and earth movement

Damage from earthquakes, sinkholes, landslides, and other ground movement is excluded. In states where these risks are more common, separate earthquake or sinkhole coverage is available as an endorsement or standalone policy.

Maintenance and wear and tear

• Gradual deterioration: Rotting wood, rusting pipes, peeling paint — damage that happens slowly over time is your responsibility, not the insurer's.
• Pest infestations: Termites, rodents, and insect damage are considered maintenance issues. Prevention and treatment are the homeowner's job.
• Mold: Mold from neglect or chronic moisture issues is excluded. Mold that results directly from a sudden, covered event — like a burst pipe — may be covered, often with a sub-limit.

Other common exclusions

• Sewer and drain backups: Water that backs up through your drains is not covered unless you add a sewer backup endorsement.
• Intentional damage: Any damage you cause deliberately is excluded from coverage.
• Government action: Damage from government seizure, demolition orders, or condemnation is not covered.
• War and nuclear hazards: These are universally excluded from homeowners policies.
• Business activities: If you run a business from home, your homeowners policy does not cover business equipment, inventory, or liability. You need separate business coverage.

What Truscott recommends

Read your exclusions carefully and talk to your agent about which gaps are worth filling. Many exclusions can be addressed with affordable endorsements or separate policies. At Truscott, we review every exclusion on your policy and recommend solutions for the risks that matter most. Request a Truscott policy checkup and we will identify your coverage gaps before they become costly surprises.