What Two Events Are Not Covered Under Homeowners Insurance?
Homeowners insurance provides valuable protection against many common risks, including fire, theft, windstorms, and certain types of water damage. However, standard policies also contain important exclusions. Two of the most significant events typically not covered under a standard homeowners' insurance policy are flooding and earth movement. Understanding these exclusions can help homeowners avoid unexpected financial hardship.
1. Flood Damage
One of the most common misconceptions is that homeowners' insurance covers flood damage. It does not. Flooding is defined as rising water that affects two or more properties or acres of land. This can include:
- Heavy rainfall causing street flooding
- Storm surge from hurricanes
- Overflowing rivers or bayous
- Flash floods
Even if the flood is caused by a severe storm, standard homeowners' insurance excludes this type of damage.
To obtain protection, homeowners must purchase a separate flood policy, often through the National Flood Insurance Program (NFIP) or a private flood insurer.
In Texas, where flash flooding is common, this exclusion is especially important. Without flood insurance, homeowners are responsible for all repair and replacement costs.
2. Earth Movement (Including Sinkholes and Earthquakes)
Standard homeowners insurance also excludes damage caused by earth movement. This category typically includes:
- Earthquakes
- Landslides
- Mudslides
- Sinkholes
- Ground shifting
Even if earth movement damages the structure of your home, repairs are generally not covered under a typical policy.
Homeowners in certain regions may be able to purchase separate endorsements or standalone policies for earthquake or sinkhole coverage. Availability and cost vary by location.
Why These Exclusions Exist
Floods and earth movement events can cause widespread, catastrophic damage affecting large geographic areas simultaneously. Because the financial risk is so high, insurers exclude these perils from standard policies and require separate coverage.
Conclusion
While homeowners' insurance covers many common risks, flood damage and earth movement are two major exclusions. Reviewing your policy’s exclusions section and considering supplemental coverage — especially in high-risk areas — can help prevent significant out-of-pocket losses.
