What Does Homeowners Insurance Cover & Not Cover in 2024?

• Published Oct 12, 2023 • Reviewed and Fact Checked Our content is reviewed and fact-checked by unbiased insurance professionals to ensure the accuracy, quality and reliability of the information we provide. by Lisa A. Koosis • 9 cited sources

The specifics of homeowners insurance aren’t necessarily intuitive. Many people are surprised that their homeowners insurance policy doesn’t cover certain events. And this knowledge may come too late  —  after uncovered damage has already occurred. Policies will usually cover many types of damage and loss, but they typically don’t cover some of the most common types of damage to a home, such as flooding due to severe weather.

Estimates vary, but about 88% of homeowners have some form of homeowners insurance.[1][2] Most lenders make homeowners insurance a condition of mortgages. Many people who don’t have a homeowners policy have paid off their home, so they might have no obligation to purchase insurance for it unless their HOA requires it.

Key Facts

Key Facts

  • All standard home insurance policies will cover the cost to repair or replace your home and its contents (with some exclusions). They will often cover additional living expenses in the event that you need to vacate your home.
  • Policies will often cover additional living expenses in the event that you need to vacate your home.
  • Coverage usually extends to outbuildings on your property, such as a garage or fence.
  • Additional coverage, such as a rider or endorsement, is needed for certain types of coverage, such as coverage for mold, expensive jewelry, or fine art.
  • Natural disasters can cause damage to your home, but only certain types are typically included in your policy, such as wind or lightning strikes. Other types like earthquakes and floods are often not included.
  • Avoid gaps in coverage by reading your policy thoroughly to identify any exclusions.

What Is & Isn’t Covered in Your Homeowners Insurance Policy?

Usually CoveredSometimes CoveredRarely Covered
TheftWater damageFlooding
VandalismMold damageEarthquakes
FireDog bites (excluding certain breeds)Negligence
Liability (injury on your property)Foundation repairNormal wear and tear
Additional living costs (if you have to vacate your property)Plumbing problemsPest infestations, including termite damage

What Does Homeowners Insurance Cover?

While you should always review the specifics of your policy to make sure you are getting the coverage you want, there are certain types of coverage that are fairly standard:

Dwelling Coverage

Dwelling coverage means your policy covers your “dwelling.” This means your insurance will cover the home you live in and the structures attached to that home. For example, if your house has a garage attached to its side, that garage is generally also considered part of your dwelling. 

Dwelling coverage will often be the backbone of your policy. However, it’s important to remember that the entirety of your property doesn’t count as a dwelling. 

Other Structures Coverage

If you have multiple structures on your property that aren’t attached to your home, such as a fence, shed, or detached garage, they typically won’t be covered under dwelling coverage. Instead, your policy will likely have a separate type of coverage for these structures. 

This coverage will typically be less comprehensive than your dwelling coverage. You may want to find a supplemental policy that covers specific structures on your property if you have any of significant value. 

Personal Property Coverage

Personal property coverage extends to damaged or stolen property. While this coverage will typically be limited to certain types of items as detailed in your policy, it will generally cover things like jewelry and expensive electronics. 

Coverage can also have sublimits per type of property, so your policy might only cover jewelry up to a certain dollar amount even if the total of your personal property coverage is higher. You’ll need to get an additional rider or endorsement to cover more valuable items.

Note that this type of coverage doesn’t usually cover items you lose. Instead, it covers items that are stolen or damaged.

Additional Living Expenses (ALE) Coverage

Additional living expenses (ALE) coverage is coverage provided by a policy for expenses incurred due to forced relocation as a result of severe damage to your home. It can usually cover temporary accommodations, food, and clothing for those covered by the policy. This coverage can be important, as even if your policy covers severe damage to your home, you will still need to wait for repairs to be made if your home has become unlivable. 

What Does Homeowners Insurance NOT Cover?

Some types of damage aren’t typically covered by a standard homeowners insurance policy. When it comes to what’s not included in homeowners insurance, here’s what you can expect:  

Flooding or Water Damage

According to the Federal Emergency Management Agency (FEMA), floods are one of the most common types of natural disasters and, unfortunately, also some of the most expensive.[3] Even just one inch of flood water can cause as much as $25,000 of damage to a home, and damage caused by floods is not typically covered by homeowners insurance. 

For locations at risk, FEMA recommends protecting yourself with a policy from the National Flood Insurance Program (NFIP).

Earthquakes

Earthquakes aren’t a risk everywhere, but it’s important to know that a homeowners insurance policy won’t typically cover damage caused by them by default if you live in a risky area. 

Each year, 100,000 earthquakes occur that can be felt, and at least 100 of those cause notable damage.[4] This number may seem low when one considers this is on a global scale. However, it’s important to understand earthquakes often affect a large area, and serious earthquakes tend to occur in the same broad areas repeatedly. You should research if earthquakes are a risk in your area and get supplemental insurance if necessary.

Neglect or Wear & Tear

Homeowners insurance typically won’t cover damage resulting from neglect, such as ignoring a hole in your roof and allowing rain to leak in. It also won’t usually cover wear and tear, such as a garage door failing due to repeated use or fading paint on your house. 

Even supplemental insurance isn’t typically available to cover these types of damage. It would be difficult to find a good policy that provides such coverage.

Pest Infestation

One survey found almost 50% of homeowners experienced some level of structural damage from pests.[5] Homeowners insurance generally does not cover this damage or the removal of these pests. 

Insurance companies generally consider damage resulting from pests as “preventable damage.” In essence, this damage is often considered the result of neglect, whether a homeowner thinks that’s a fair assessment or not. If pests are a major issue in your area, an annual inspection from an expert can catch any issues early and hopefully prevent major damage.

Mold

Unlike the other items on this list, mold is sometimes covered by a homeowners insurance policy.[8] Mold resulting from a “covered peril,” meaning an event your policy normally covers (such as a burst pipe), will often be covered by the policy. 

In such cases, it’s important to report the issue early. A delay on filing your claim increases the chances that you won’t be covered. 

Mold also won’t be covered if it is considered the result of neglect, such as ignoring a leaky pipe or spilling a drink on a carpeted floor.

Other Types of Insurance to Consider

The following are some optional homeowners insurance coverage types to consider to supplement a standard homeowners insurance policy. 

Earthquake Insurance

It’s been estimated that earthquakes cost the United States as much as $14.7 billion annually.[9] 

Earthquakes are also difficult to predict. While it’s somewhat understood where they’re likely to hit, we don’t really know how to predict their severity. Even if you haven’t seen serious damage from earthquakes in the past, you should still consider earthquake insurance if you live in a risky area. Severe earthquakes can ruin homes.

Flood Insurance

As discussed earlier, FEMA advises people in areas at risk of flooding to get a policy from the National Flood Insurance Program (NFIP) to cover flood damage. Flooding is both common in many areas and extremely expensive. Flood insurance should be considered essential if your home is somewhere flooding is likely to occur.

Water Backup Insurance

Water backup insurance covers damage caused by clogged sewers, failed sump pumps, and backed up drains. Experts often recommend water backup insurance for all homeowners.[7] The insurance is relatively inexpensive compared to the cost of repairing and replacing the sorts of systems the insurance covers.

Frequently Asked Questions About What Homeowners Insurance Does (& Doesn’t) Cover

The following are some frequently asked questions regarding homeowners insurance coverage:

Why are natural disasters not covered in a homeowners insurance policy?

Practically speaking, homeowners insurance often doesn’t cover damage resulting from natural disasters because it would just be too much of a risk for an insurance company. If such coverage came as default with homeowners insurance, natural disasters would be extremely expensive to insurance providers, as disasters typically hit many homes at once. The total cost of claims would likely put the insurance company out of business.

What is covered in a home insurance policy?

Home insurance policies usually cover damage to a dwelling that isn’t the result of neglect, wear and tear, or certain natural disasters. The policy is also likely to have some level of coverage for other structures on the insured property, personal property (the contents of the home), and expenses incurred as a result of being unable to live in your home for a period of time due to damage.

What is not covered in a home insurance policy?

Anything not explicitly outlined in your home insurance policy is likely not covered. Commons exclusions include high-value items like expensive jewelry and fine art. Contact your insurer if you need a particular type of coverage and aren’t sure if your policy provides it. 

Additionally, some types of damage and loss might be explicitly not covered by a policy. Some examples include flood damage, earthquake damage, and damage resulting from neglect.

Does homeowners insurance cover fire damage?

Homeowners insurance will typically cover fire damage, although it’s important to take reasonable actions to reduce the severity of that damage. This doesn’t mean endangering your own life. Instead, it means you are expected to attempt to contact emergency services in a timely manner once you are aware of the fire. 

You can also often get discounts on your homeowners insurance policy if you take certain safety measures, such as installing an automatic sprinkler system.

Does homeowners insurance cover water damage?

Homeowners insurance sometimes covers water damage. It depends on the cause. 

Most homeowners insurance policies don’t cover floods, but they will usually cover damage if it occurs due to a burst pipe inside the home. As a general rule of thumb, if water comes from outside (such as with flooding), it isn’t covered without an endorsement.

Related Pages

Reviewed by Lisa A. Koosis

Lisa A. Koosis is an experienced content writer who has ghostwritten extensively for clients in the insurance and finance sectors. As a subject matter expert, she can explain complex financial topics in easy-to-understand language. Lisa is well-versed in topics ranging from life insurance to pet plans and specializes in medical insurance including Medicare, Medicaid, and commercial plans.