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What homeowners insurance covers and excludes

A homeowners policy bundles several coverages. The policy wording decides which causes of loss are covered and which are excluded.

6 min read · Last reviewed 2026-10

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The coverages in a typical policy

CoverageWhat it generally does
DwellingRepairs or rebuilds the structure of your home after a covered loss
Other structuresCovers detached structures such as a garage or fence
Personal propertyCovers your belongings, with limits and exclusions that apply
Loss of useHelps with extra living costs if a covered loss makes the home unlivable
Personal liabilityHelps with legal costs and damages if you are responsible for injury or damage to others
Medical payments to othersPays small medical bills for guests hurt at your home, regardless of fault

Named perils and open perils

Some policies list the causes of loss they cover, called named perils. Others cover all causes of loss except those the policy excludes, called open perils. Many policies use a mix, such as open perils for the dwelling and named perils for belongings. Read the section of your policy that lists covered causes of loss.

Exclusions to look for

  • Flood is typically excluded and requires a separate policy.
  • Earthquake is typically excluded and handled by separate coverage.
  • Normal wear, deterioration and lack of maintenance are generally not covered.
  • Sewer or drain backup is often excluded unless you add an endorsement.
  • Some policies limit or exclude certain events by region, such as wind or hail. Check yours.

Questions to ask your agent

  • Is my dwelling covered on a replacement cost or actual cash value basis?
  • What are my limits for jewelry, electronics and other valuables?
  • Do I have a separate deductible for any event?
  • Which endorsements are available, and what do they cost?

Questions

Does homeowners insurance cover flood?

Most homeowners policies do not. FEMA states that flood insurance is a separate policy that can cover buildings, contents or both.

Is my belongings coverage enough?

Create a home inventory with photos and compare the total with your personal property limit. Ask about higher limits for valuable items.

Sources

Informational only. Rules and policy terms change and differ by state and insurer. Confirm details with your policy, your insurer or your state insurance department.

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Replacement cost vs. actual cash valueThe valuation method in your policy changes how much a claim pays. It is one of the most important lines to understand before you need it.
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Flood and earthquake: why they need separate coverageTwo of the most damaging risks are usually left out of standard homeowners policies. Knowing that before a loss is the whole point.
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How to file a home insurance claimThe steps you take in the first days affect how smoothly a claim goes. Document everything and read your policy's requirements.
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