Homeowners Insurance Exclusions

An estimated 88% of homeowners have purchased homeowners insurance.^[1] But when tragedy strikes, these consumers may discover that their policy doesn’t protect them. Common exclusions can leave you on the hook for severe repairs, including some you can’t prevent. 

Issues like flooding, earthquakes, and severe thunderstorms could all be excluded from your policy. And 33% of homeowners report they’ve been impacted by severe weather like this in recent years.[1] 

Reading your policy and understanding those exclusions is critical. In some cases, you could consider an additional policy to protect you from risks common to your area. 

Top Homeowners Insurance Exclusions to Know 

Key Facts About Homeowners Insurance Exclusions

Common Exclusions in Homeowners Insurance 

Homeowner insurance exclusions keep your costs down. Almost every policy has one. Understanding what they are can help you determine if you need to customize your plan to address your unique risks. 

These are common exclusions most homeowners face:

Flooding 

More than 20% of homeowners say they’re at risk for flooding damage.[1] Of them, 78% purchased flood insurance.[1] These savvy consumers understand that a basic policy won’t protect them. 

Insurance companies don’t cover flooding for the following two reasons:

• Natural disasters: Many floods are caused by superstorms and other natural events. Basic plans rarely cover these types of issues. You need specialized plans to ensure you’re covered.
• Maintenance: If you live in a flood-prone area, your insurance company expects you to prepare your home accordingly. If the property still floods, a natural disaster is the likely cause. 

Plumbing Failures

Pipes bringing water into and out of your home can fail due to improper maintenance, shifting ground, or time. When those pipes are clogged or broken, they can bring sewage into your home or keep water from leaving. 

Because plumbing failures are at least potentially preventable, they’re typically not covered by insurance. Some cities, like Las Vegas, offer insurance partnerships to ensure you’re not responsible for costs.[4] However some homeowners seek riders from their homeowners insurance providers instead. 

Earthquakes or Shifting Ground

About 55 earthquakes happen globally every day.[5] Some are minor quivers you’ll never feel. But others cause major destruction, including loss of life and property. Since these are considered natural disasters, they’re typically not covered by homeowners insurance. 

Just as earthquakes can ruin your home, so can subtle shifts in the ground. A fault line that cracks your foundation or causes deep cracks in your walls is also considered a natural disaster that isn’t covered without a rider. 

Improper Repairs 

In 2019, close to 28% of homeowners repaired their own plumbing systems, and close to 24% fixed their own air conditioning problems.[6] If something went wrong with these DIY fixes, homeowners could be on the hook for cleanup costs. 

Insurance companies conduct investigations before paying claims. If your company can prove that something you did caused damage you want them to pay for, you’ll be out of luck. 

Neglect

Homeowners are required to keep their homes safe and reasonably maintained. If you skip a step and your neglect causes damage, your insurance policy may not protect you. 

For example, a very old tree in your backyard needs pruning. But the work is expensive, and you cancel an appointment with an arborist. That tree splits and hits your roof. The insurance company could make you pay for the repairs. 

Wear & Tear

Your homeowners insurance policy should protect you when a sudden event or problem ruins your home or property. These plans aren’t designed to keep everything in your home in tip-top shape. 

Most homeowners plans won’t cover the following types of expenses:

• Aging appliance repair or replacement 
• Aging roof and gutter material no longer performing properly 
• Cracking driveways 
• Decaying window frames 
• Peeling paint 

Infestation

Pests are common in American homes.[7] For example, about 14 million of the 124 million occupied homes in the United States report roaches, and 14.8 million report seeing rodents. 

Critters can cause extensive damage to your home and property. But most homeowners insurance plans consider their removal part of routine maintenance. Your policy typically won’t help you get rid of them. 

Power Outage or Surge

Utility companies are typically on the hook for the damage their products cause — not your homeowners insurance policy. And plenty of problems can stem from electrical lines. 

A surge of power can ruin delicate electrical products like computers and some televisions. And a loss of power lasting days could cause all of your food to spoil. Without a specialized rider, you might need to fight the utility company for compensation. 

Home-Based Businesses

Some people run home businesses with no employees, inventory, or foot traffic. But if you open your office to outsiders and they get injured, or all of your product is wiped away in an accident, you’re probably unprotected. 

A home-based business policy can help if you’re sued or otherwise in legal trouble due to your at-home company. And special riders could help protect business assets like cars too. 

‘Dangerous’ Dog Breeds

Many insurance companies ban specific dog breeds due to the high claims costs if they bite. Dog breeds most often banned include Doberman pinschers, pit bulls, rottweilers, chow chows, and wolf mixes.[8] 

Some companies offer dog-specific policies that protect you if your banned dog bites someone. Without them, you could be required to cover the damage if your pup misbehaves. 

Review Your Policy to Verify What Is (& Isn’t) Covered

All insurance policies include exclusions. Be a savvy consumer and read your policy carefully before you finalize it. Ask your insurance agent about anything you don’t understand, including what is and isn’t covered. 

Frequently Asked Questions About Homeowners Insurance Exclusions

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Reviewed by Kristopher Kane

Kristopher Kane is a career freelance writer with over 15 years of experience and a broad portfolio encompassing various topics within the insurance industry. He has written for both B2B communication and consumer-level customer engagement.