Most homeowners believe their insurance policy covers everything — until disaster strikes. The truth is, standard home insurance doesn’t protect against every risk. Knowing what’s not covered can save you from major financial headaches later.

Let’s break down 7 common exclusions that your home insurance likely won’t cover — and what you can do about them.

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1. Flood Damage

One of the biggest surprises for homeowners? Floods aren’t covered by standard home insurance.

If your home is damaged by rising water, heavy rain, or a nearby river overflowing, your regular policy won’t help.

👉 What to do: Get a separate flood insurance policy through FloodSmart.gov.

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2. Earthquakes and Land Movement

Home insurance also excludes earthquakes, sinkholes, and landslides. If the ground shifts and your home is damaged, you’re on your own — unless you have specific coverage.

👉 What to do: Buy earthquake insurance if you live in a high-risk area like California.

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3. Routine Wear and Tear

Insurance covers sudden and accidental damage, not long-term issues from poor maintenance.

Not covered:

• Roof leaks due to aging
• Mold from poor ventilation
• Rusted pipes
• Pest or termite damage

👉 Pro tip: Keep up with home repairs to avoid claim denials.

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4. Intentional Damage or Illegal Activity

If someone in your household intentionally damages your home or causes issues through illegal actions, insurance won’t pay out.

For example:

• Starting a fire on purpose
• Running a drug lab
• Committing fraud with claims

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5. Business-Related Losses

Running a business from home? Your personal home insurance won’t cover business equipment, customer injuries, or lost income from your operations.

👉 Solution: Add home-based business insurance or get a separate policy.

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6. Expensive Valuables Over Policy Limits

Home insurance has limits on items like:

• Jewelry
• Art and collectibles
• Designer watches
• High-end electronics

If these items are stolen or damaged, your payout might be far less than their value.

👉 Fix it: Add scheduled personal property coverage to protect your luxury items.

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7. Power Outages and Utility Failures

If a blackout causes your food to spoil or your pipes to burst, your home insurance may not cover it — especially if the outage wasn’t caused on your property.

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Final Thoughts

Home insurance is vital — but it’s not all-inclusive. By understanding these common exclusions, you can protect yourself with extra coverage where needed.

lowering your homeowners insurance costs