What are exclusions in homeowners insurance?

A home insurance exclusion is a risk not covered by your policy. Common homeowners insurance exclusions are floods, earthquakes, and lack of maintenance.

What is a home insurance exclusion?

Home insurance covers a lot, but it doesn’t cover everything. Risks (known as perils in the industry) that are not covered are called exclusions. Exactly what is covered and not covered can vary based on your insurance company, policy type, and the items that were damaged.

A standard homeowners insurance policy (called an HO-3) typically only protects your personal belongings from a specific list of events, such as fire or theft. This is known as named-perils coverage.

However, your house and other physical structures on your property usually have broader protection. Most policies cover damage from any cause — unless that cause is specifically listed as an exclusion. This is called open-perils coverage.

Named-perils: What’s covered and what’s excluded?

Named-perils coverage will only help pay to repair or replace your property if it was damaged by one of several risks listed in your policy. Common risks included in named-perils coverage are:

• Fire 

• Lightning

• Hail and windstorms

• Explosions

• Riots and civil commotion

• Damage from aircraft

• Damage from vehicles

• Smoke

• Malicious mischief and vandalism

• Theft

• Volcanic eruptions

• Falling objects

• Weight of ice, snow, or sleet

• Accidental discharge of water or steam

• Sudden and accidental tearing apart, cracking, burning, or bulging of certain household systems

• Freezing of household systems

• Sudden and accidental damage from artificially generated electrical current

Damage caused by any risk that is not listed in your policy documents is excluded.

Open-perils: What’s covered and what’s excluded?

Open-perils coverage offers broader protection for your home. Sometimes called all-risk coverage, it covers damage caused by any risk of direct physical loss, unless your policy specifically lists it as an exclusion.

While it may sound like it covers everything, no insurance policy is truly "all-risk." Your policy documents will list specific exceptions — such as floods, earthquakes, or poor upkeep — that are not covered. It’s important to review the exclusions so you understand exactly where your protection ends and where you might benefit from extra coverage.

Most common home insurance exclusions

Just as it’s important to know what home insurance covers, it’s crucial to know what your policy doesn’t cover. Home insurance exclusions will vary by company, but here’s a look at some of the most common.

Water and flooding

While homeowners insurance should cover damage from a sudden, unexpected pipe burst or plumbing failure, it may not cover water damage caused by a slow leak or the cost of mold remediation as a result of such a leak.

Just as notably, homeowners insurance typically excludes coverage for damage caused by water from external sources, including:

• Flash floods

• Storm surges

• Levee breaks

• Tsunamis

You can purchase flood insurance as an endorsement or separate policy to fill this coverage gap. While lenders often require this coverage for homes in high-risk flood zones, it’s recommended for almost all homeowners since flood risk exists everywhere. According to Floodsmart.gov, in the last 20 years, 99% of U.S. counties have experienced flooding.

Finally, home insurance usually excludes damage from sump pump failure and sewage blockage. You’ll need a separate water backup endorsement to cover this.

Earth movement

Much like flooding and other water-related acts of nature, earth movements are generally excluded from a standard homeowners insurance policy. That means insurance won’t cover damage from:

• Earthquakes

• Landslides

• Mudslides

• Sinkholes

You can usually purchase a separate earthquake insurance policy to get coverage if you live in an area prone to earthquakes.

Intentional acts or neglect

Damage caused intentionally by you or anyone in your household is not covered under your policy. Filing a claim for intentional damage is considered insurance fraud and can lead to heavy fines, a permanent criminal record, or even jail time.

Similarly, if an insurer discovers that damage to your home or property stemmed from your own neglect — like failing to keep up with routine maintenance — coverage will likely be denied.

Ordinance, law, or government action

If any ordinance or law requires construction, upgrades, repairs, or demolition of your property to comply with current building codes, it may not be covered by your homeowners insurance policy. Similarly, if any government agency seizes or destroys your property, you typically cannot seek coverage through your home insurance.

War and nuclear hazards

Losses stemming from any type of war or nuclear incidents are commonly excluded from a standard homeowners insurance policy.

Pests

Damage from pests like termites is typically excluded from a standard home insurance policy. Preventing termite damage — or addressing their presence right away — is considered regular home maintenance. If you ignore the signs of termite damage (or damage from other pests, such as squirrels, bats, or bed bugs), insurers will view this as negligence.

Power failure

If a power surge originates on your property and results in damage (like a short circuit that causes a fire), your insurance should protect you against these losses. However, your policy likely excludes or limits coverage for damage caused by power failures that originate outside your property, such as those from your utility company.

Other home insurance exclusions

Your home insurance may have other notable exclusions to be aware of, such as:

• Business use: If you use your home to conduct business, you may not be able to make claims for business-related damages or they may be limited in coverage. You’ll need a separate policy for that. For instance, if you rent your home or another structure on your property, like a detached garage, you’ll need a landlord insurance policy.

• Roofs: Your policy may not offer coverage for your roof if it’s older or hasn’t had proper maintenance through the years.

• Pools and trampolines: Often called “attractive nuisances,” features like pools and trampolines increase the risk of injury on your property. Because of this risk, some insurers may require higher coverage limits or specific safety features, such as a locked fence. In some cases, a company might even decline to offer your coverage or cancel your existing policy if these items don't meet their safety standards. 

• Dog bites: Some insurers exclude certain dog breeds from coverage. If your dog injures someone and is a restricted breed, your liability coverage may not pay for medical or legal costs.

• General wear and tear: Home insurance is meant for sudden, unexpected damage. Elements of your home’s structure or systems that degrade over time, as expected, won’t be covered.

Optional coverages to fill coverage exclusions

Just because a standard home insurance policy has notable exclusions doesn’t mean you can’t get coverage for those items. You just may need to purchase additional coverage through endorsements, such as:

• Flood insurance to cover damage caused by external water sources

• Water backup insurance to protect you against sump pump failure and sewer backup

• Earthquake insurance to cover damage caused by earth movements

• Landlord insurance if you rent out a portion of your home

• Ordinance or law coverage to cover costs related to repairing or rebuilding your home as a result of local ordinances and building codes

If you’re worried about a specific exclusion, talk with your insurer about endorsements you can add to your policy to ensure coverage.

Reviewing and understanding your exclusions

Every home insurance policy is different. Spend some time reading through your policy’s declarations page and ask your agent about your home insurance exclusions if you have any questions. They can talk you through coverage gaps and how you can better protect yourself, either through endorsements or increasing your coverage limits.

Why are some damages excluded from home insurance?

Home insurance exclusions help insurers manage against certain risks that are too high for them to take on. If they were to insure against some of those greater risks, premiums would go even higher, making the product less accessible to homeowners.

Home insurance exclusions are also a way for insurers to motivate homeowners to keep up with maintenance, since negligence plays a moderate role in some of these exclusions.