What Homeowners Insurance Doesn’t Cover: Common Exclusions Explained
Homeowners insurance can help protect your home, belongings and finances, but it does not cover everything. Understanding common home insurance exclusions can help you spot coverage gaps, explore additional coverage options and feel more confident in your protection.
What does homeowners insurance cover?
A standard homeowners insurance policy is designed to help with certain sudden and accidental losses. Depending on your policy, this may include damage from covered events such as fire, wind, hail, theft or certain types of water damage. However, limits, conditions and exclusions vary by policy, so it’s important to review your homeowners coverage and understand what is and is not covered before a loss occurs.
Does homeowners insurance cover flood damage?
Standard homeowners insurance typically does not cover flood damage. Homeowners usually need a separate flood insurance policy to help protect against damage caused by rising water, storm surge, overflowing rivers or heavy rain that enters the home from outside.
Before buying a home, it’s important to know whether the property is in a flood zone. You can check a property’s flood risk by reviewing the FEMA flood maps for the area. If flood insurance is required or recommended, the annual premium should be included in your budget. You may be able to purchase flood insurance through the National Flood Insurance Program (NFIP), or from an insurance provider authorized to offer NFIP policies.
Are short-term rentals covered by homeowners insurance?
If you rent out all or part of your home through services like Airbnb or Vrbo, your standard homeowners policy may not provide the protection you need. Homeowners insurance is generally designed for a home you live in, not for a property being used as a business or rental. That means property damage, theft or liability claims related to short-term rental activity may be limited or excluded. Before listing your home as a short-term rental, review your coverage with an insurance agent.
Does home insurance cover termite damage?
If termites damage your walls, flooring or structure over time, a standard homeowners insurance policy will likely not pay for repairs because pest control is considered regular home maintenance. To help protect your home, keep decaying wood away from the structure, schedule regular pest inspections, and treat termites as soon as they are found. Ask a pest control company about a termite bond, which can help cover expenses such as inspections and treatments.
Are bed bug infestations covered by home insurance?
Like termites, a standard homeowners insurance policy usually does not cover bed bug infestations. These pests can spread quickly and may be costly to remove, so it’s important to be proactive. After traveling or bringing used furniture into your home, watch for warning signs such as bites, stains, or live bugs, and contact a pest control professional if you suspect an infestation.
Does home insurance cover general wear and tear?
Damage to property or belongings due to normal wear will likely not be covered by your homeowners policy. Home insurance is designed to help with sudden and accidental damage, not the normal aging and deterioration of your home, appliances, or belongings. Regular maintenance, repairs, and replacements are typically the homeowner’s responsibility. However, it’s important to note that some appliances or systems may be covered by a manufacturer’s warranty.
Is mold covered by homeowners insurance?
This depends. Some homeowners policies may cover mold if it results from a covered loss, such as water damage from a burst pipe or storm damage that allows rain to enter your home. But if mold develops because of improper maintenance, long-term moisture, poor ventilation or an ignored leak, it will likely not be covered.
Review your homeowners insurance coverage
The most common home insurance exclusions involve foreseeable or preventable issues, not sudden losses. Homeowners insurance is designed to help protect you financially when unexpected losses happen, but every policy has limits. If you’re unsure whether your current coverage fits your home and lifestyle, contact your local Alfa® agent to review your coverage and learn about options that can help you stay protected.
All coverages are subject to deductibles and policy limits. This is not an insurance policy. It is intended only to provide a general description of Alfa Insurance® and/or its product lines and services. An actual policy contains the specific details of the deductibles, coverages, conditions and exclusions. Your Alfa® agent can explain the policy and benefits and answer any questions you may have before you buy.