
Most insurance policies exclude losses by covering natural disasters, war, and nuclear events. These exclusions are usually outlined in the policy's fine print.
If you live in a flood-prone area, for example, your homeowners insurance may not cover damage caused by a hurricane. This is because hurricanes are considered a natural disaster.
In some cases, insurance policies may also exclude losses due to intentional acts, such as vandalism or arson. This means that if you intentionally damage your own property, the insurance company won't cover the costs.
Policies may also exclude losses caused by wear and tear, which is the gradual deterioration of a property over time.
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What Insurance Excludes
Most insurance policies exclude losses by not covering flood damage, earthquake damage, and losses due to terrorist attacks. These types of damage are considered high-risk and are usually not covered under standard property insurance policies.
Flood damage, in particular, is a major concern for many homeowners. If you live in a flood zone, your property insurance policy will likely exclude coverage for flood damage. It's essential to check with your local government office or commercial bank to determine if your business is located in a flood zone.
You can purchase a flood insurance policy through your insurance agent or the National Flood Insurance Program. If you need to buy a flood insurance policy, be sure to also consider purchasing "ordinance or law" coverage to help pay for the extra costs of tearing down the structure and rebuilding it.
Some other common exclusions in home insurance policies include:
- Aggressive dog breeds, such as German shepherds, pit bulls, and rottweilers
- Home-based businesses, unless they are specifically covered
- Full cost of high-value items, such as jewelry and antiques
- Local building ordinance or law, if your home is damaged in a covered peril but isn't up to local building codes
- Power surges caused by your utility companies
It's essential to review your home insurance policy to understand what is excluded and what is covered. You may be able to purchase endorsements or other policies to address excluded events, such as water damage from a sewer backup or earthquake damage.
Natural Disasters
Floods are the most common natural disaster in the country, but standard home insurance policies don't cover flood damage.
Flood damage is excluded from standard home insurance policies, including damage from sewer backup, sump failure, and water that seeps into your home's foundation. However, if a windstorm tears a hole in your roof and rain pours in, the flood damage would be covered by your home insurance policy.
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Some sudden and accidental water damage may be covered by your policy, but only if the cause of loss is sudden and accidental. For example, if a pipe bursts because a tree fell on your home in a storm, the water damage may be covered.
Earthquakes and earth movement are also excluded from common standard property insurance policies, and can severely damage property and contents inside. Foundations can be ruined, compromising a facility's structure and leading to possible collapse issues.
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Flooding
Flooding is not typically covered under standard property insurance policies. However, you can purchase separate coverage through the National Flood Insurance Program (NFIP).
The NFIP offers protection from flood damage, but it's essential to be aware of the after-effects of water damage, such as mold growth. This can help you mitigate future problems with your insurance coverage before disaster strikes.
To understand how a natural disaster like flooding will impact your property, it's crucial to have foresight. This includes being aware of the issues that may arise after the fact, such as insurance gaps.
For more information on special coverages, valued property, and estimating damages, check out the NFIP's website or read our publication on floods.
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Earthquakes and Earth Movement

Earthquakes and earth movement can be a major concern for homeowners. Earthquakes are a disaster that can happen anywhere in the United States at any time, and no state is invulnerable.
Damage caused by earthquakes can be widespread and catastrophic, and after a bad quake, claims may be too expensive for insurance companies to handle. Earthquake damage can severely damage property and the contents inside, ruining foundations and compromising a facility's structure.
Earthquake protection is available for purchase in addition to your regular policy, but it's not included in common standard property insurance policies. For more information on adding earthquake coverage and deductible issues, you can read our publication on Earthquake Insurance.
In the aftermath of an earth movement disaster, it's essential to have your property thoroughly inspected by a professional to ensure that all damages are identified and any future hazards are noted.
Damage Types
Damage to your home or property can come in many forms, and most insurance policies exclude losses caused by natural disasters.

Flooding, for example, is often excluded from standard homeowners insurance policies, as it's typically covered by a separate flood insurance policy. This is because flooding is a common and costly type of damage that's not easily covered by standard insurance.
High winds and hail can also cause significant damage to your home, and most insurance policies exclude losses caused by these types of weather events. In fact, a single hail storm can cause tens of thousands of dollars in damage to a single roof.
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Wind Damage in Storm States
Wind damage in storm states can be a major concern for homeowners. In areas prone to hurricanes like Alabama, Florida, Louisiana, Mississippi, North Carolina, South Carolina, and Texas, wind damage may not be covered by home insurance.
Some states, like Texas, have designated high-risk counties where wind damage is excluded from policies. This means homeowners in these areas need to carefully review their policies to understand what's covered and what's not.

In hurricane-prone states, wind damage may be excluded from home insurance, depending on the policy's wording. Homeowners should check their policies to see if wind damage is a covered policy peril.
If you live in a high-risk storm state, it's essential to understand what's covered and what's not in your home insurance policy.
Water
Water damage can be a major headache, and it's essential to understand what's covered and what's not. Damage from a burst pipe in your home is often covered by your insurance, but that's not the case for damage from flash flooding.
Water from tsunamis, tidal water, storm surge, and levy breaks is usually excluded from coverage. This means you'll need to foot the bill for repairs yourself.
Sewage blockage and broken sump pumps are also often part of this insurance exclusion, which can lead to costly repairs.
Exclusions by Cause
Knowing what's excluded from your insurance policy is crucial to avoid unexpected expenses.
Some insurance policies exclude losses caused by specific natural disasters, such as floods or earthquakes. Knowing what's excluded from your home insurance is important to making sure you're protected.
Certain types of damage, like damage from pests or vermin, are often excluded from standard insurance policies. This is why it's essential to review your policy carefully.
Insurance policies may also exclude losses caused by government actions, such as building demolitions.
Intentional Loss
Intentional loss is a big no-no when it comes to insurance claims. If you intentionally cause damage to your home, you can't expect your insurer to pay a claim.
Intentionally setting a fire in your house is a classic example of intentional loss. It won't be covered by your insurance, and you could even face prosecution for insurance fraud.
If you intentionally damage your home to file a claim, you're not only out of luck, but you could also be in trouble with the law. Your insurer will investigate and may even report you to the authorities.
Host a party and intentionally harm a guest, and your liability insurance won't be there to bail you out. You'll be on the hook for any damages or lawsuits that follow.
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Neglect

Neglect is a common reason for denied home insurance claims. Most homeowners policies exclude damage caused by neglect, so it's essential to take care of your property.
If you fail to replace a damaged beam, and it falls, your insurer will likely deny the claim. This is a clear example of neglect causing damage.
A home insurance company will deny your claim if the damage stems from neglect. This includes regular wear and tear, like replacing wood on your back deck because of age.
If your sink has been leaking for a while and damages your kitchen counters, home insurance won't help you out.
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Mold
Mold can be a costly and time-consuming issue to deal with, especially if it's not covered by your insurance policy. In most cases, mold is a home insurance exclusion unless the mold resulted from a covered peril.
If a storm breaks your window and the resulting water damage causes mold, you may have coverage for the mold remediation. But for mold that develops slowly or for which you cannot identify a cause, you will likely need to pay for any necessary treatment and repairs out of pocket.
Some insurance companies may offer an endorsement for mold remediation, so it's worth speaking with your insurance agent to see if this is an option for you.
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Pests
Pests can cause significant damage to your home, but most homeowners policies don't cover infestations of vermin, including insects and rodents.
Termites, bedbugs, and mice are all examples of pests that can be excluded from coverage. If your home is affected by any of these pests, you may need to pay out of pocket for eradication and remediation costs.
However, if pests trigger a covered loss, such as an electric fire caused by mice chewing through wiring, your home insurance policy may cover the damage from that fire.
War and Nuclear Threat
War and nuclear hazards are excluded from standard home insurance policies.
Damage from being directly in a war zone is not covered. This includes any physical harm or destruction to your home.
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Nuclear radiation, reaction, or radioactive contamination is also not covered by a home insurance policy.
Nuclear power companies have their own liability insurance, so your home insurance policy wouldn't be involved in any kind of claim payout for homes in the hazard zone.
However, if a nuclear event causes a fire, you may have some coverage for the resulting damage.
Insurance Policy Exclusions
Most insurance policies exclude losses by covering certain events, but not others. Floods, earthquakes, and acts of terrorism are generally not covered.
If you need to buy a flood insurance policy, contact your insurance agent or the National Flood Insurance Program. You can also consider purchasing "ordinance or law" coverage to help pay for the extra costs of tearing down the structure and rebuilding it.
Some common exclusions include protection against water damage from a sewer backup, which can usually be covered with an endorsement or a separate flood insurance policy. Earthquake insurance can also be purchased separately if you're worried about earth movement.
Here are some additional exclusions to be aware of:
- Aggressive dog breeds, such as German shepherds, pit bulls, rottweilers, and wild hybrids, are not covered by liability insurance.
- Home-based businesses may only be covered up to a certain amount of property, around $2,500.
- Certain valuables, like jewelry and antiques, may not be covered for their full value.
- Local building ordinance or law may not be covered if your home is damaged in a covered peril and needs extensive repairs but isn't up to local building codes.
- Power surges caused by your utility companies are not covered.
Government Action
Government action can exclude losses from your home insurance policy. This means that if a government agency confiscates, destroys, or seizes your property, your insurance won't cover the loss.
You might be wondering if there's an exception to this rule. In some cases, there is - if a government agency destroys your property to prevent a fire from spreading, your insurance policy might cover the loss.
What Are Home Insurance Exclusions?
Home insurance exclusions are a crucial aspect of understanding your policy. They're the events or losses that your insurance company won't cover.
Floods, earthquakes, and acts of terrorism are generally not covered by property insurance policies. You can find out if your location is in a flood zone by contacting your local government office or commercial bank.
Some common home insurance exclusions include water damage from sewer backups, which can usually be covered with an endorsement or a separate flood insurance policy. Earthquake insurance can also be purchased separately if you're concerned about earth movement.
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An endorsement is a rider or add-on that changes your home insurance policy without replacing or renewing it. These can offer financial protection against excluded perils for an extra cost.
The exclusions section of your home insurance contract lists the perils and financial losses that your insurance company will not cover. Some losses, like those due to war, nuclear hazard, government action, wear and tear, and intentional losses, cannot be covered by a home insurance policy.
Some dog breeds, like German shepherds, pit bulls, rottweilers, and wild hybrids, are seen as higher-risk and won't be covered by your liability insurance. Home-based businesses are also usually excluded from most home insurance policies, with some policies only covering up to a certain amount of home business property, around $2,500.
Certain valuables, like jewelry and antiques, may not be covered for their full value under your home insurance policy. For example, most home insurance policies only cover jewelry up to $1,500.
Here are some common home insurance exclusions:
- Floods, earthquakes, and acts of terrorism
- Water damage from sewer backups
- Earthquake damage
- Aggressive dog breeds
- Home-based businesses
- Full cost of high-value items
- Local building ordinance or law
- Power surges caused by your utility companies
Sources
- https://www.iii.org/article/are-there-any-disasters-my-property-insurance-wont-cover
- https://www.lalitigationlawyers.com/coverage-exclusions.html
- https://www.kin.com/blog/homeowners-insurance-exclusions/
- https://www.adjustersinternational.com/resources/news-and-events/3-things-excluded-from-your-insurance-policy/
- https://www.bankrate.com/insurance/homeowners-insurance/homeowners-insurance-exclusions/
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