A standard homeowners policy covers a lot — but the gaps are significant and often invisible until you file a claim and learn what is excluded.
What a standard HO-3 policy covers
- Fire, lightning, and explosions
- Windstorms and hail
- Theft and vandalism
- Personal liability for injuries on your property
- Additional living expenses if your home becomes uninhabitable
What it does NOT cover
Flood damage
This surprises people most. Standard policies exclude flooding entirely. You need separate flood insurance through the NFIP or a private insurer — critical if you are in or near a flood zone.
Earthquakes
Earthquake damage requires a separate endorsement or standalone policy, especially important on the West Coast.
Maintenance and wear
Insurers expect you to maintain your home. Damage from neglect, gradual leaks, mold, or pest infestations is generally excluded.
High-value items
Jewelry, art, collectibles, and electronics are covered only up to sub-limits — often $1,000 to $2,000. Valuable items need a scheduled endorsement (a "rider").
| Damage | Covered? | Solution |
|---|---|---|
| House fire | Yes | Standard policy |
| Flood | No | NFIP / private flood |
| Earthquake | No | Separate endorsement |
| Stolen $8K ring | Partially | Scheduled rider |
The three biggest coverage gaps are flood, earthquake, and high-value items. Review these specifically — do not assume they are included.
Replacement cost vs. actual cash value
Replacement cost pays to rebuild without depreciation. Actual cash value subtracts depreciation, leaving you short. Always choose replacement cost coverage for both your dwelling and contents.
Estimate the right coverage amount for your home and belongings with our home insurance calculator.