While dwelling coverage provides critical protection for the home’s structure, it does not cover every type of damage or loss. Understanding what is excluded is just as important as knowing what is covered, as many claim denials stem from excluded events.
One of the most common exclusions under dwelling coverage is flooding. Damage caused by rising water from outside the home, such as heavy rain, storm surge, or overflowing rivers, is not covered under standard homeowners insurance. Flood insurance must be purchased separately to cover these risks.
Earthquake damage is another major exclusion. Cracks in foundations, collapsed walls, or structural shifts caused by seismic activity are not covered unless an earthquake endorsement or separate policy is in place. This exclusion applies even in areas with known earthquake risk.
Dwelling coverage also excludes damage caused by wear and tear or lack of maintenance. Gradual deterioration, rot, mold growth from ongoing moisture issues, and damage caused by neglect are not considered insurable events. Insurance is designed for sudden, accidental losses, not predictable maintenance issues.
Certain types of water damage are excluded as well. While burst pipes may be covered, damage from long-term leaks, seepage, or poor drainage is typically excluded. Sewer backups and sump pump failures often require additional endorsements to be covered.
Damage caused by pests is another common exclusion. Termites, rodents, insects, and other infestations are considered preventable through maintenance and are not covered under dwelling coverage.
Acts of war, nuclear hazards, and government actions are also excluded from dwelling coverage. While these events are rare, they are specifically listed as exclusions in most policies.
Intentional damage caused by the homeowner is not covered. If damage is caused deliberately, insurance will not pay for repairs. Similarly, fraudulent claims can result in denial and potential policy cancellation.
Some policies also exclude certain types of cosmetic damage. For example, roof damage that affects appearance but not function may be excluded under specific endorsements. This can be surprising to homeowners who expect all visible damage to be covered.
Dwelling coverage does not cover land. Damage to soil, landscaping, or land features is typically excluded, though limited coverage for landscaping may be available under other parts of the policy.
Understanding what dwelling coverage does not cover helps homeowners identify where additional insurance or endorsements may be needed. It also reinforces the importance of regular maintenance and realistic expectations when relying on homeowners insurance.
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