Dwelling coverage exclusions define the situations in which insurance will not pay for structural damage. These exclusions are listed in the policy and are a common source of misunderstanding among homeowners.
Flood damage is one of the most significant exclusions. Rising water from outside the home, including storm surge or heavy rainfall accumulation, is not covered without separate flood insurance.
Earthquake damage is also excluded under standard policies. Structural shifting, foundation cracking, and collapse caused by seismic activity require separate coverage.
Wear and tear, aging materials, and poor maintenance are excluded because they are considered preventable. Insurance does not cover predictable deterioration.
Pest damage, including termites and rodents, is excluded under dwelling coverage. Insurers view these issues as maintenance responsibilities.
Certain policies exclude cosmetic damage, particularly to roofs. Damage that does not affect function may not be covered, depending on endorsements.
Understanding exclusions helps homeowners identify coverage gaps and avoid relying on insurance for losses that are not covered.
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