What’s NOT Covered by Home Insurance? (The Fine Print You Need to Know)

Home insurance protects you from disasters—but not everything is covered. Surprise claim denials can cost you thousands. Here’s what standard policies don’t cover (and how to fill the gaps).

🚫 10 Common Things Home Insurance WON’T Cover

1. Flood Damage

• Standard policies exclude floods (even from heavy rain or hurricanes).

• Fix: Buy separate flood insurance (NFIP or private insurers like Neptune).

• Cost: $700–$1,500/year (depends on flood risk).

2. Earthquakes & Land Movement

• Sinkholes, landslides, and earthquakes require special endorsements.

• Fix: Add earthquake insurance (or a “Difference in Conditions” policy).

3. Sewer Backups

• Water backing up from drains isn’t covered unless you add sewer backup coverage.

• Cost: ~$50–$250/year extra.

4. Mold

• Most policies exclude mold unless caused by a covered peril (like burst pipes).

• Negligence (e.g., poor ventilation) = no coverage.

5. Termites & Pest Damage

• Insects, rodents, and rot are considered preventable maintenance issues.

• Fix: Regular pest control + home warranty for repairs.

6. High-Value Items (Jewelry, Art, Collectibles)

• Standard policies limit theft coverage (e.g., $1,500 for jewelry).

• Fix: Schedule a “rider” or floater for full appraised value.

7. Business Equipment at Home

• $2,500–$5K max for business-related items (laptops, inventory).

• Fix: Get business insurance or a home office endorsement.

8. Wear & Tear / Maintenance Issues

• Roof leaks from age? Denied.

• Faulty wiring? Only if it causes a covered fire.

• Fix: Keep up with home maintenance.

9. Nuclear Accidents & War

• No insurer covers “acts of war” or radiation.

• Exception: Some terrorism damage may be covered (check your policy).

10. Short-Term Rentals (Airbnb, VRBO)

• Most insurers void coverage if you rent your home without commercial liability insurance.

• Fix: Get a host protection policy (e.g., Proper Insurance).

⚠️ Sneaky Exclusions That Surprise Homeowners

• Dog bites (some breeds are excluded).

• Trampolines & pools (may require extra liability coverage).

• Vacant homes (most policies stop after 30–60 days of vacancy).

💰 How to Fill the Gaps

🔍 How to Check Your Coverage

1. Read your policy’s “exclusions” section.

2. Ask your agent about common claim denials in your area.

3. Review coverage annually (especially after renovations or buying valuables).

💡 Final Tip: Don’t Assume You’re Covered

Most homeowners find out too late that their policy has gaps. Before disaster strikes:
✔ Document high-value items (photos + receipts).
✔ Bundle endorsements for cheaper rates.
✔ Compare quotes every 2–3 years.