Lifestyle

6 Things Your Homeowner’s Insurance Won’t Pay For

By Curtis Jones · June 5, 2026

A 2025 Insurance Information Institute survey found that nearly 60% of homeowners couldn’t identify a single exclusion in their own policy. That gap between what homeowners assume is covered and what actually is can cost tens of thousands of dollars when something goes wrong.

1. Flood damage — including from storms

This is the most widespread and consequential misunderstanding in all of homeowner’s insurance. A standard homeowners policy does not cover flood damage — period. This includes storm surge, river overflow, and surface water that enters your home from outside. If a hurricane pushes water into your living room, your standard policy won’t cover it. FEMA data shows that roughly 25% of all flood claims come from properties outside designated high-risk flood zones — meaning flood coverage isn’t only for people whose mortgage lenders required it. Separate flood insurance is available through FEMA’s National Flood Insurance Program and private insurers.

2. Earthquake damage

Earthquake coverage is universally excluded from standard homeowners policies and requires a separate policy or endorsement. This matters most in California, the Pacific Northwest, and the New Madrid Seismic Zone — but earthquakes have caused significant damage in states not typically associated with seismic risk, including Virginia, Oklahoma, and Texas. If your home sits in any state with documented seismic activity, earthquake coverage deserves a conversation with your insurer.

3. Sewer backup and water from below

Most standard homeowners policies will not cover water that backs up from a sewer or drain, or overflows from a sump pump. This is distinct from burst pipes — which are typically covered — and it catches homeowners completely off guard when a heavy rain event overwhelms the municipal sewer system and water enters their basement through floor drains. A water backup endorsement typically costs $50 to $150 per year and covers this specific risk.

4. Pest and vermin damage

Termites, bedbugs, mice, and other infestations are excluded from standard homeowners policies on the grounds that damage from pests is considered a maintenance issue — preventable by regular upkeep — rather than a sudden, accidental event. Termite damage alone costs American homeowners approximately $5 billion annually, according to the National Pest Management Association. None of it is covered. Separate pest protection plans are available through licensed pest control companies.

5. Mold — under most circumstances

Coverage for mold is complicated and frequently denied. For mold damage to be covered, insurers must deem the cause sudden, accidental, and covered under the policy. If a pipe burst yesterday and mold began growing in the walls as a result, it may be covered. If mold developed because of a slow leak that went unaddressed for months, it will almost certainly be denied as a maintenance failure. Because mold grows slowly and quietly, most claims fall into the second category.

6. Expensive jewelry, art, and collectibles above policy limits

Standard homeowners policies set a limit — typically $1,000 to $2,500 — on coverage for jewelry, artwork, electronics, and collectibles. A $15,000 engagement ring that is stolen is covered up to the policy limit — leaving you responsible for the difference. A scheduled personal property endorsement, also called a rider, allows you to specifically insure high-value items at their full appraised value for a modest additional premium. If you own anything of significant individual value, it is almost certainly underinsured without one.

Call your insurance agent and ask for a complete list of exclusions in your current policy. The conversation takes twenty minutes and can prevent a six-figure surprise when you file a claim.