What Your Home Insurance Doesn’t Cover: Common Exclusions
Your homeowner’s insurance policy provides a critical financial safety net, protecting you from loss due to events like fire, windstorms, and theft. However, no standard policy covers everything. It’s just as important to understand what your policy excludes as it is to know what it includes.
Being aware of these common exclusions can help you identify gaps in your coverage and purchase the additional protection you may need.
What is a Policy Exclusion?
An exclusion is a specific type of event, peril, or loss that your insurance policy explicitly states it will not cover. These are listed in the “Exclusions” section of your policy documents.
Top 7 Common Exclusions in a Standard Policy
1. Flooding
This is the most common and often most surprising exclusion. Damage from natural flooding—due to overflowing rivers, heavy rain, or storm surge—is not covered by a standard homeowner’s policy. You must purchase a separate flood insurance policy, typically from the National Flood Insurance Program (NFIP).
2. Earthquakes
Similar to floods, damage from earthquakes, landslides, and sinkholes is also excluded from standard policies. You will need to purchase a separate earthquake insurance policy or add an endorsement to your existing policy if you live in an at-risk area.
3. Sewer and Drain Backup
If water backs up through your sewers or drains and floods your basement, the resulting damage is typically not covered. You can, however, usually add a “water backup and sump pump overflow” endorsement to your policy for a small additional premium.
4. Pest Infestations (Termites, Rodents)
Damage caused by pests like termites, bed bugs, or rodents is considered a preventable maintenance issue, not a sudden and accidental event. Therefore, the cost of extermination and repairs is not covered.
5. Normal Wear and Tear / Lack of Maintenance
Insurance is designed to cover sudden and accidental damage, not the gradual deterioration of your home. A roof that is damaged in a hailstorm is covered; a 25-year-old roof that simply starts leaking is not. Similarly, issues caused by a lack of maintenance, such as slow water leaks leading to mold, are often excluded.
6. Mold Remediation
While mold damage that results from a covered peril (like a burst pipe) may have limited coverage, most policies have a cap on the amount they will pay for mold remediation. Widespread mold caused by long-term humidity or slow leaks is generally not covered.
7. Nuclear Hazard and Acts of War
While highly unlikely, it’s worth noting that standard policies exclude damage from nuclear accidents, war, and government actions.
How Domidocs Helps You Manage Your Coverage
Understanding your insurance is crucial for protecting your family’s finances. Domidocs is the perfect tool for managing your policies and understanding your coverage.
1. A Secure Vault for All Your Policies
The Domidocs digital vault is the ideal place to store your complete homeowner’s insurance policy, as well as any separate policies you have for flood or earthquake. This ensures you can access your documents 24/7 to review your coverage, exclusions, and deductibles.
2. Link Your Policy to Your Home Inventory
When you have a covered loss, you need to prove what you owned. With Domidocs, your detailed home inventory is stored right alongside your insurance policy. This creates a powerful, organized system that streamlines the claims process and helps ensure you receive a fair settlement for any covered event.