Well, it’s called home insurance, so you would think it covers everything about your home, right? Not quite. Most people don’t realize where their coverage stops until something goes wrong — and by then, it’s too late.
Your home is likely your biggest asset, and your home insurance policy is meant to protect it. But like every contract, it has fine print. Understanding what’s not covered can help you avoid major out-of-pocket expenses and make smarter choices about supplemental protection.
What’s Usually Not Covered by Homeowners Insurance?
Let’s start with the most common exclusions found in a standard HO-3 policy (the most common type of homeowners insurance in the U.S.):
Flooding
Most standard policies don’t cover flood damage from storms, hurricanes, or rising groundwater. In FEMA-designated flood zones, separate flood insurance is often required—and it may come with a 30-day waiting period before coverage begins. You’ll need a separate policy through FEMA’s National Flood Insurance Program or a private provider.
Earthquakes and Earth Movement
That includes landslides, sinkholes, and even volcanic activity. If you live in a risk-prone area, separate earthquake coverage is a must.
Maintenance and Wear & Tear
If your roof leaks because it’s 30 years old and never maintained, that’s on you. Insurance covers sudden and accidental damage, not neglect.
Mold, Pests, and Infestations
Mold growth from long-term moisture problems or a termite invasion isn’t typically covered. These are considered preventable maintenance issues.
Intentional Damage or Illegal Activity
Any damage caused intentionally or due to criminal acts by residents is excluded.
A Real-World Example: One homeowner discovered their crawlspace had flooded after heavy rain. Their insurer denied the claim, stating the damage was due to rising groundwater—not a burst pipe—so it wasn’t covered. Cleanup and structural repairs cost the homeowner around $18,000 out of pocket. This mirrors many documented cases where homeowners face steep bills because of ground or surface water seeping into basements or crawlspaces.
Surprising Gaps That Catch Homeowners Off Guard
Some exclusions aren’t obvious until you try to file a claim.
Not All Water Is Treated the Same
One of the trickiest gray areas in home insurance is water damage — especially when it’s not caused by weather. A smart leak sensor or shut-off valve might’ve caught the issue early, preventing damage for under $100. But if the leak goes unnoticed for days, you’re looking at $10,000 or more in ruined flooring, drywall, and personal belongings. Worse, your insurer could deny the claim entirely if they determine the cause was “lack of maintenance.”
Sewer Backups
Unless you’ve added a special endorsement, a sewer or drain backup can lead to tens of thousands in damage with zero payout.
Building Code Upgrades
If your local code requires updates after a claim (like upgrading wiring), your policy may not cover the full cost unless you have ordinance or law coverage. This is especially important in older homes, where original systems may fall far short of today’s codes and trigger significant upgrade requirements.
High-Value Items
Jewelry, art, collectibles, and even some electronics are often capped at $1,000–$2,500. If your engagement ring or camera setup exceeds that, you’ll need a rider.
Home-Based Businesses
Run a business from your home? Your policy likely excludes business equipment and liability. In most cases, you’ll need a separate business insurance policy or a home business endorsement to cover inventory, tools, and client-related risks.
Watch Out: Just because your mortgage lender required home insurance doesn’t mean you’re fully protected. Lender requirements often focus on structural protection, not contents, liability, or loss of use.
How to Fill the Gaps in Your Coverage
Prevent Problems Before They Start
The best insurance claim is the one you never have to file. Many water-related losses—like burst pipes, water heater leaks, or washing machine overflows—are technically covered, but they can still cause thousands in damage and weeks of disruption. Smart home technology like water leak detectors and automatic shut-off valves can catch small problems before they become disasters. A few hundred dollars in prevention can protect your home and keep your premiums from rising.
Ask for an Insurance Review
Most insurers offer free policy reviews. Bring your declarations page and ask about:
- Flood and earthquake coverage
- Sewer backup endorsements
- Replacement cost vs. actual cash value
- Coverage limits on valuables
Add Riders or Endorsements
These optional add-ons can cover everything from jewelry to ordinance upgrades. Ask your insurer about the difference between blanket coverage and scheduled personal property riders for high-value items—this distinction can significantly affect how your valuables are protected.
Create a Home Inventory
If you ever need to file a claim, you’ll want documentation. The AHA Home Inventory System makes it easy.
Use the AHA Insurance Advisor
This tool helps AHA members review their policies and find smart ways to optimize coverage—without overpaying. For best results, schedule an annual policy review with your insurance agent before your renewal date to ensure your protection evolves with any home upgrades, purchases, or lifestyle changes.
Protect Your Home With Eyes Wide Open
Tip: Don’t just trust your policy title — trust the details. The right questions now can save you from the wrong surprises later.
Don’t wait for a denied claim to find out what’s missing. Now that you know what home insurance doesn’t cover, you can ask the right questions and close those gaps.
Be Ready If You Ever Need to File a Claim
Even with the best planning, claims still happen. When they do, the last thing you want is to be scrambling for paperwork, photos, or next steps.
That’s why we created the AHA Homeowners Insurance Claim Toolkit — a step-by-step guide to help you prepare, document, and navigate the claims process with confidence. Whether it’s storm damage, a kitchen fire, or a burst pipe, this toolkit can help you get what you’re owed, faster.
👉 Access the AHA Claim Toolkit now and protect yourself from stress and surprises when it matters most.