Common Homeowners Insurance Exclusions You Should Know Before You Buy
A plain list of what standard homeowners policies leave out, from flood and earthquake to wear and tear, sewer backup, mold and business property, with fixes.
A standard homeowners policy does not cover everything that can damage a house. The exclusions that surprise people most are flood, earthquake and other earth movement, sewer or drain backup, wear and tear and neglect, long-term leaks, most mold, and many business or high-value property losses. Most of these gaps can be closed with a separate policy or an endorsement, but only if you ask before the loss. This guide lists the common exclusions, explains the reasoning, and shows how to fill each gap.
How exclusions work
In an open-perils form like an HO-3, the policy covers direct physical loss to the dwelling unless a cause is excluded. The exclusions section lists those causes, and the policy then adds exceptions to the exclusions (sometimes called "ensuing loss" language). Reading both parts matters: a loss from an excluded cause might still be covered if it triggers a covered consequence, such as fire following an earthquake in many policies.
Exclusions fall into three groups: risks that are too large or correlated for private insurers to cover in a standard policy (flood, earthquake, war, nuclear hazard), losses that are your maintenance responsibility (wear, tear, neglect), and losses that need specialized pricing (business activity, high-value items).
The big ones
| Exclusion | What it means | How to fill the gap |
|---|---|---|
| Flood and surface water | Rising water from rivers, storms, overflowing bodies of water and often surface runoff | National Flood Insurance Program policy or private flood policy |
| Earthquake and earth movement | Earthquake, landslide, mudflow, sinkholes in many forms | Earthquake endorsement or separate policy; check sinkhole rules in your state |
| Sewer or drain backup | Water backing up through sewers, drains or sump pumps | Water backup endorsement with its own limit |
| Wear, tear and deterioration | Gradual aging of roofs, pipes, finishes | Maintenance and timely replacement |
| Neglect | Failure to protect the property after a loss | Take reasonable steps to prevent further damage |
| Continuous or repeated seepage | Slow leaks over weeks or months | Inspect plumbing; fix leaks promptly |
| Mold, fungus and rot | Often excluded or heavily limited unless caused by a covered peril | Ask for the mold limit; fix moisture sources |
| Intentional loss | Damage you cause on purpose | None |
| War and nuclear hazard | Large-scale hostile or nuclear events | None in standard coverage |
| Government action | Seizure or destruction by authorities | Limited exceptions for fire-fighting |
| Business activity | Business property and liability from a home business | Home business endorsement or a business policy |
| Vacancy | Certain losses after the home sits empty for an extended period, often 60 days | Vacant home endorsement or policy |
Flood and earthquake in more detail
Flood is the largest uninsured risk for many homeowners, and it is not limited to mapped high-risk zones. The National Flood Insurance Program (NFIP), run by FEMA, offers building and contents coverage up to program limits, and private insurers also write flood policies. NFIP policies typically carry a waiting period of about 30 days from purchase before coverage starts, with exceptions such as certain loan-related purchases. Earthquake coverage may be sold by the same carrier as an endorsement or through a separate insurer, often with a percentage deductible of 5 to 20 percent. See the guide on flood and earthquake coverage gaps.
Water: covered versus not covered
Water is the most confusing category because the same wet floor can fall on either side of a line.
- Usually covered: sudden and accidental discharge, such as a burst pipe or an appliance supply line failing suddenly.
- Usually not covered: flooding from outside, groundwater seepage, sewer or drain backup without an endorsement, and gradual leaks.
- Often limited: the cost to tear out and repair the failed pipe itself (the "tear-out" issue) varies by policy.
If you have a basement, a sump pump or a finished lower level, a water backup endorsement should be on your short list. Limits of $5,000 to $25,000 are common, and higher limits may be available.
Wear, tear and maintenance
Insurers pay for sudden damage, not for the cost of aging. A roof that leaks because shingles reached end of life is a maintenance issue, while a roof damaged by a hailstorm is a covered loss. The distinction decides many disputed claims. Documenting maintenance, keeping records of repairs and having inspection reports can help you show that a loss was sudden. For more, see why claims get denied.
Personal property sublimits and exclusions
Even covered property can have low caps. Typical sublimits per category in common forms include modest amounts for cash, jewelry and watches theft, firearms theft, silverware and business property on the premises. Some items are excluded altogether, like motorized vehicles, certain animals, and property of tenants or roomers. If you own valuables, schedule them with an endorsement or a personal articles policy with appraisals.
Liability exclusions
Liability coverage generally excludes intentional harm, business activities, professional services, auto accidents, and injuries to household members. Some carriers exclude specific dog breeds or require a canine liability endorsement. Check the policy and disclose any dog, pool or trampoline.
A short audit you can do in 20 minutes
- Pull your policy and find the exclusions section and any endorsements.
- Check for flood, earthquake, sewer backup and mold limits.
- Note roof settlement terms (RCV, ACV or schedule).
- Look up your flood risk on FloodSmart.gov or through your local floodplain office.
- Make a list of valuables and compare their value with the sublimits.
- Ask your agent which gaps matter for your area, then price the fixes.
Frequently asked questions
Does homeowners insurance cover a burst pipe?
Usually yes for the sudden damage, though the policy may limit the cost of accessing and repairing the pipe itself. Gradual leaks are typically excluded.
Is mold covered?
Often only when it results from a covered peril and sometimes with a low limit. Check your policy's mold language.
Is a sinkhole covered?
It depends on state law and the policy. Some states require sinkhole coverage to be offered, and standard earth movement exclusions may apply.
Can I buy flood insurance after a storm is forecast?
Usually there is a waiting period, so coverage purchased days before a storm may not apply. Buy before the season.
Sources and where to check
- FEMA and FloodSmart.gov — National Flood Insurance Program information.
- National Association of Insurance Commissioners — consumer guidance and regulator directory.
- Your own policy and your state department of insurance for exact exclusion wording.