What Is NOT Covered by Home Insurance? 5 Surprising Exclusions

It is the nightmare scenario: A foot of water floods your basement, destroying your new floors and expensive leather sofa. You call your insurance agent, relieved that you have a comprehensive policy, only to hear three devastating words: "That isn't covered."

Home insurance is designed for sudden and accidental damage, but it is not a catch-all warranty for everything that could possibly go wrong. There are massive gaps in even the best policies—gaps that could cost you tens of thousands of dollars if you aren't prepared. Here are the 5 biggest exclusions hiding in your policy.

1. Floods (The #1 Misunderstanding)

Standard home insurance policies never cover flood damage. It doesn't matter if it's a hurricane or just a really heavy thunderstorm that causes the creek back doesn't rise. To be protected, you must purchase a separate Flood Insurance policy (usually through the NFIP or a private carrier).

2. Earth Movement

"Earth movement" is insurance speak for:

• Earthquakes
• Landslides
• Mudslides
• Sinkholes

If the ground under your house moves and cracks your foundation or topples your home, a standard policy pays nothing. In states like California, Washington, and Missouri, adding separate Earthquake Coverage is a critical decision.

3. Maintenance Issues (Wear and Tear)

Insurance is not a maintenance plan. If your roof is 25 years old and simply wears out, the insurance company won't buy you a new one.

Similarly, damage caused by:

• pest_control Termites / Insects
• pest_control_rodent Rats / Mice
• water_drop Slow Leaks / Mold
• build Rust / Rot

...is all considered your responsibility as a homeowner to prevent.

4. Sewer Backup

This is a nasty surprise. If the city sewer line backs up into your home, or your sump pump fails during a storm and floods your finished basement, standard policies do not cover the cleanup or repairs.

You typically need to add a specific endorsement called "Water Backup and Sump Pump Overflow" coverage. It is usually cheap ($50-$100/year) and highly recommended for anyone with a basement.

5. Dog Bites (Certain Breeds)

While liability coverage generally pays for dog bites, many insurers have a list of excluded breeds (often Pit Bulls, Rottweilers, Dobermans, etc.).

If you own a dog on the "prohibited list" and don't tell your insurer, they can deny the claim if your dog bites someone, leaving you personally liable for medical bills and lawsuits.

Conclusion: Read the Fine Print

The time to find out what isn't covered is before you have a loss, not after. Call your agent today and ask three specific questions: "Do I have flood coverage?", "Do I have water backup coverage?", and "Is my roof covered for replacement cost?"

Frequently Asked Questions