Home insurance is designed to protect one of your biggest investments—but it’s just as important to understand what your policy doesn’t cover as what it does. Many homeowners assume they’re fully protected, only to discover gaps when it’s too late. Let’s break down the most common home insurance exclusions and what you can do about them.
Why Exclusions Exist
Insurance policies are built to cover sudden and accidental losses, not predictable risks or maintenance issues. Exclusions help insurers keep premiums affordable by limiting coverage for high-risk or preventable events.
Flood Exclusion
Standard homeowners insurance does not cover damage caused by water that originates from outside of the home. Separate flood insurance policies are available. If your home is in a flood zone flood insurance is highly recommended, and often required by lenders. Otherwise, flood insurance is optional.
Earthquake Exclusion
In Washington it is difficult to find a home insurance policy that includes earthquake coverage. It is grandfathered on some older policies, but new policies rarely include it. Separate earthquake insurance policies are available. The risk of earthquake in Western Washington is high, so earthquake insurance is highly recommended.
Landslide Exclusion
It is common for home insurance policies to exclude damage caused by landslides. Landslide insurance policies are available, however they do often require a geotech survey confirming the hill is not at risk of sliding.
Wear and Tear or Lack of Maintenance Exclusion
Insurance won’t pay for damage due to neglect, aging systems, or general wear and tear.
Slow Leaks and Mold Exclusions
If a pipe bursts and water damages your home, that is typically covered. But if a pipe leaks slowly over weeks or months, that is usually excluded since many times these leaks could have been prevented or at least mitigated. It is often slow leaks that lead to mold damage. Mold is often excluded or limited. Some insurers offer coverage for slow leaks for additional premium.
Sewer & Drain Backup Exclusion
Damage caused by water backing up through drains (toilet, bathtub, sinks) or sump pumps is usually excluded from standard coverage. Some homeowners insurance policies have a strict exclusion, while others only exclude damage caused by reverse flow or overflow of a septic tank or sump pump basin. This coverage can be added for an additional premium.
Business Exclusion
Standard homeowners insurance policies do not cover business exposures or business property. Sometimes basic coverage can be added for low-risk businesses, but there are many advantages in starting a separate commercial insurance policy instead.
Ordinance or Law Exclusion
If local building codes require upgrades during repairs, your policy may not cover the added cost unless you have specific coverage.
Concerned about homeowners insurance exclusions? Contact Chris Elliott Insurance Agency!
A short review today can prevent a major surprise tomorrow. Our Seattle insurance agency will help you to get the coverage that you need, often at a very affordable price. Contact our team today!
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