The hidden limits of home insurance protection

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Published Date 2/7/2025

When an insurance company refuses to cover damage or repairs, chances are good that they have stated the types of things they DO cover somewhere in the policies they issue. It’s akin to a description accompanied by the words, “It’s not my job” in there somewhere.

With the nation currently in the throes of several winter storms, around 120 million people across the U.S. are about to face off against freezing temperatures. This is all while overly-sunny Los Angeles is still battling the devastation of six wildfires that have ravaged the area, helped along by the Santa Ana winds.

With this much destruction, it’s reasonable to be curious about what would happen to your own home if it was damaged during a natural disaster. Answers lie within your home insurance policy, and the hard truth is that not everything is covered by your basic plan, says Realtor.com’s Audrey Ference. “In fact, when it comes to many scenarios outside of your control, you could be in quite a bit of trouble.”

Using a recent installment of Realtor’s Home Buyer’s Guide to Home Insurance, Ference flags certain types of coverage most standard policies exclude. “Bottom line?” she asks. “Don't bank on your insurance company footing the bill for every unfortunate situation.”

Home insurance typically covers natural disasters, crimes, and accidents including wind damage, hail, dog bites, theft, vandalism, snowstorms, and burst pipes, says Ference. However, as insurance adviser Ashleigh Cloud Trent notes, "Insurance policies are like snowflakes; no two are exactly the same.”

“Standard policies often exclude flooding from rain, hurricanes, or overflowing rivers. As Amy Danise of Forbes Advisor explains, "Many homeowners don't realize that flood damage is not covered under typical home insurance policies." Even an inch of floodwater can cause $25,000 in damage, making separate flood insurance crucial in prone areas.

Earthquakes and landslides also require additional coverage, particularly in California where most residents live near fault lines, says Ference. Water damage must be "sudden and accidental" to qualify for coverage; slow leaks are typically excluded. Mold coverage depends on its cause - it's covered if resulting from insured perils like burst water heaters but not from preventable issues like humidity.

Sewer backups, normal wear and tear, and major renovation damage usually require separate policies. Historic homes may face additional challenges, as illustrated by Trent's example: "What should have been a $9,000 vinyl siding repair ended up costing homeowners $90,000, because the historical society insisted they use a specific type of shingle.”

Realtor, TBWS

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