A standard homeowners policy covers a surprising amount — fire, wind, theft, and liability among them. But the exclusions are exactly where families get blindsided, usually in the worst possible week. The time to learn your gaps is a calm afternoon now, not the day after a loss. Here are the ones worth checking, and how to close each.
Flood is almost never included
This is the big one. Standard policies exclude flood damage entirely — any water that rises from the ground up. If you're in or near a flood zone (and the maps keep expanding), you need a separate flood policy through the National Flood Insurance Program or a private insurer. Roughly a quarter of flood claims come from areas considered low-to-moderate risk, so "I'm not in a flood zone" is not the same as "I'm safe."
Earthquakes and earth movement
Earthquakes, landslides, sinkholes, and general earth movement are typically excluded and require an endorsement or a standalone policy. If you live anywhere with seismic risk, price it — the deductible is usually a percentage of your dwelling coverage rather than a flat dollar amount, so read the terms closely.
Sewer and drain backup
When a municipal sewer or a clogged drain backs up into your basement, your base policy usually won't help — that's considered a maintenance issue, not a sudden covered peril. A water-backup endorsement is inexpensive (often $40 to $100 a year) and closes one of the most common and miserable gaps there is.
Your expensive stuff has sub-limits
Jewelry, watches, art, firearms, and collectibles are frequently capped at a few thousand dollars total — far less than people assume. A "scheduled" rider insures specific high-value items for their full appraised value, often for a few dollars per $1,000 of coverage.
Make a quick photo or video inventory of every room while you're thinking about it. It makes any future claim faster, fairer, and far less stressful.
Maintenance, mold, and wear
Insurance covers sudden, accidental damage — not neglect. Gradual leaks, mold that grows from an unaddressed drip, pest infestations, and ordinary wear are generally your responsibility. This is one more reason routine upkeep (caulking, roof checks, clearing gutters) is really a form of self-insurance.
Make sure you actually have replacement cost
Two settings quietly decide how much you'll receive:
- Replacement cost vs. actual cash value. Replacement cost pays to rebuild or replace at today's prices; actual cash value subtracts depreciation, which can gut a payout on a roof or older belongings. Choose replacement cost wherever you can.
- Dwelling coverage that matches today's rebuild cost. Construction prices have risen sharply. If your coverage still reflects the price you paid years ago, you could be badly underinsured. Ask your agent to re-run the rebuild estimate.
The bottom line
Pull out your declarations page and check four things: flood, water backup, your high-value sub-limits, and whether you're on replacement cost with an up-to-date dwelling figure. Closing these gaps usually costs a few hundred dollars a year — a rounding error next to the losses they prevent.
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