What Homeowners Insurance Covers (and Doesn't) — 2026 Guide

Almost every U.S. homeowners insurance policy follows one of a handful of standardized forms — the most common being **HO-3** (special form, the default for single-family homes) and **HO-5** (open-perils on both the structure and your belongings, common for higher-value homes). Older homes sometimes use **HO-8** (modified replacement cost), condos use **HO-6**, and renters use **HO-4**. Landlord (non-owner-occupied) properties use **DP-3**.

Your declarations page lists six coverage categories:

- **Coverage A — Dwelling** (the structure itself) - **Coverage B — Other Structures** (detached garage, fence, shed) - **Coverage C — Personal Property** (your belongings, including off-premises) - **Coverage D — Loss of Use** (temporary housing if your home is uninhabitable) - **Coverage E — Personal Liability** (lawsuits, injuries you cause) - **Coverage F — Medical Payments** (no-fault payments for guest injuries)

HO-3 covers the dwelling and other structures on an **open-perils** basis (anything not specifically excluded), and personal property on a **named-perils** basis (only the perils listed). HO-5 upgrades personal property to open-perils too. The exclusions section is where most "is this covered?" questions are actually answered. Read it.

Under any modern HO-3 or HO-5 policy in the U.S., the following 16 named perils are covered for personal property, and the open-perils dwelling coverage covers everything not specifically excluded:

1. Fire and lightning 2. Windstorm and hail (with regional caveats for coastal/hurricane states) 3. Explosion 4. Riot or civil commotion 5. Aircraft damage 6. Vehicle damage (not your own vehicles) 7. Smoke (sudden and accidental) 8. Vandalism and malicious mischief 9. Theft 10. Volcanic eruption 11. Falling objects 12. Weight of ice, snow, or sleet 13. Accidental discharge of water from plumbing, heating, AC, or appliances 14. Sudden cracking, bulging of plumbing/heating/AC systems 15. Freezing of plumbing, heating, AC (with caveats) 16. Electrical surge damage from artificially generated current

What is **excluded** in nearly every policy: flood, earthquake, ground movement, war, nuclear hazard, intentional acts, neglect, ordinance/law enforcement, wear and tear, mold (with exceptions), pets (your own), business activities, and a long list of "intentional + foreseeable" categories.

The rest of this guide walks through the specific scenarios that drive the most "is this covered?" search traffic, with the actual answer in each case.

Water damage is the #1 homeowners insurance claim — about 29% of all property claims. The dividing line:

**Covered (sudden + accidental):** - A pipe bursts inside your wall - Ice dam pushes water under shingles into your living space - Washing machine hose ruptures - Water heater fails suddenly - Rain enters through a wind-damaged roof (because the wind damage is the covered peril) - Accidental discharge from your sprinkler system

**Not covered (gradual or external):** - A pipe that has been slowly leaking for weeks behind drywall — gradual damage, considered maintenance - External flooding from rivers, lakes, storm surge, or surface water — flood is **always** excluded; you need a separate policy through the National Flood Insurance Program (NFIP) or a private carrier - Sewer backup or sump pump failure — excluded by default but **closable** with a sewer-backup endorsement at $40-$70/yr - Ground seepage through your foundation from a high water table - Damage from a leak you knew about and didn't repair

Storm-surge damage from a hurricane is flood damage, even though the storm is wind. This is the single most common coverage surprise in FL ($7,900/yr average homeowners), LA ($6,100/yr), and TX ($4,800/yr). If you live within ~500 feet of any body of water — including stormwater retention ponds — flood insurance is worth the $700-$3,000/yr premium.

Roof claims are second only to water damage in frequency. Here's the matrix:

**Covered:** Wind tearing off shingles, hail crushing the granule layer, a tree falling on the roof in a storm, fire damage, hail-driven puncture, weight of ice or snow causing structural failure.

**Not covered:** Normal wear and aging, neglected maintenance, cosmetic-only hail dents (increasingly excluded as a separate exclusion), poor original installation, and — critically — roofs past a state-specific age threshold.

**The age trap.** In Florida, most insurers won't write new policies on roofs over 15 years old; some won't renew. In hail-prone states (CO, KS, NE, OK, TX), insurers may switch your roof to **actual cash value (ACV)** coverage at 10-15 years. A 12-year-old $15,000 roof on a 25-year lifespan is considered 48% depreciated. ACV pays you ~$7,800 minus your deductible. Replacement cost (RCV) pays the full $15,000 minus deductible. This single distinction is worth thousands and is rarely highlighted at policy purchase.

**Action:** Pull your declarations page. Find Coverage A. Look for "Replacement Cost" or "Actual Cash Value" attached to the dwelling/roof line. If you see ACV and your roof is under 20 years old, ask your carrier what it takes to upgrade.

Mold is one of the most heavily restricted coverages. The rule:

**Covered:** Mold that develops as a direct, near-term consequence of a covered water-damage event (e.g., burst pipe → wet drywall → mold within days/weeks). Typical sublimit: $5,000 to $10,000. Some carriers offer a mold endorsement raising the sublimit to $25,000-$50,000 for $50-$200/yr.

**Not covered:** Mold from humidity, mold from a long-standing leak you didn't address, mold in a poorly-ventilated bathroom, mold caused by external flooding.

Texas requires insurers to **offer** at least $25,000 of mold coverage, but you have to buy it. Florida policies routinely cap mold at $5,000. Given the humidity and the building stock, FL and TX homeowners should treat mold endorsement as a near-default purchase.

Prevention is dramatically cheaper than remediation: maintain HVAC, fix small leaks immediately, ventilate bathrooms, and run a dehumidifier in basements.

Foundation issues are the **most expensive** common home problem and the **least likely** to be covered. Typical foundation repair runs $5,000-$15,000 for minor work; serious structural failures reach $20,000-$50,000+.

**Excluded:** - Settling and shifting (the most common cause) - Earth movement (sinkholes — separately purchasable in FL; landslides; subsidence) - Tree root intrusion - Original construction defects - Earthquake damage (need a separate earthquake policy in CA, WA, OR, AK)

**Covered only when the cause is a specifically named peril:** - Vehicle impact - Explosion (gas, water heater) - Falling objects (tree on the house) - Sudden plumbing failure under a slab (frequently disputed) - Fire

For homeowners in expansive-clay regions (TX, OK, AR, parts of CO, parts of CA), a third-party foundation warranty from a structural-repair company is $300-$500/yr and covers what insurance won't.

Personal liability (Coverage E) covers bodily injury and property damage you or members of your household cause to others. Dog bites are a major category — the Insurance Information Institute pegs the average dog-bite claim at about **$64,000**.

**Generally covered:** Your dog bites someone on or off your property. Your dog jumps on someone and causes an injury. Your dog damages someone else's property.

**Breed exclusions are common.** Many carriers either decline to insure households with certain breeds or exclude dog liability:

- Pit Bull / American Staffordshire Terrier - Rottweiler - Doberman - German Shepherd (some carriers) - Akita, Chow Chow, wolf hybrids, Mastiffs, Presa Canario

**State Farm and USAA** are the most notable carriers that **do not** maintain breed exclusion lists.

If you own a restricted breed: shop carriers that don't exclude (State Farm, USAA), buy a standalone animal-liability policy (XINSURANCE, Einhorn) at $200-$500/yr, and consider a $1M personal umbrella policy ($200-$400/yr) for the catastrophic-claim tail. A single previous bite on record makes coverage much harder to obtain regardless of breed.

**Covered:** - A tree falls on your house, garage, fence, or other covered structure. Coverage typically includes both the structural repair AND tree removal up to a per-tree limit ($500-$1,000) with an event aggregate of about $5,000. - A tree falls and blocks a driveway or wheelchair ramp (some policies include this).

**Not covered:** - A tree falls in your yard and hits nothing - Preventive removal of a dying or leaning tree (maintenance) - Stump grinding after a covered removal - Cosmetic damage to lawn or landscaping from the falling tree

**Neighbor's tree on your property:** You file on your **own** policy, not theirs. Exception: if you sent the neighbor a written warning that the tree was dead/dangerous and they ignored it, you may have a negligence claim against their liability — but those are hard to win.

In tree-heavy storm states (FL, LA, NC, SC, GA), maintain a higher Coverage D (Loss of Use) limit so temporary housing is covered if a major storm takes out multiple structures.

Theft of personal property is covered under Coverage C, and unlike most categories, it follows your belongings off-premises too:

**Covered:** - Burglary or break-in at your home - Theft from your car (your **belongings** are covered by your homeowners; the **car** is covered by your auto comp) - Theft from a hotel room or rental property during travel - Theft from a storage unit you've rented

**Sublimits to know:** Jewelry is typically capped at $1,000-$1,500 per item with a $2,500-$5,000 aggregate. Cash is capped at about $200. Firearms at $2,000-$2,500. Electronics may have an aggregate of $5,000.

**For items above sublimits**, add a **scheduled personal property endorsement** (often called a floater). Cost: $20-$100/yr per item. Required documentation: appraisal or receipt. This is essential for engagement rings, watches, instruments, art, and collectibles.

**File a police report first.** Insurers require it for almost any theft claim. Photograph or video your belongings (room-by-room) once a year and store the file off-site — most claim denials trace to inadequate documentation, not coverage gaps.

For under $300/yr in total, the following endorsements close the most common coverage failures:

- **Sewer / water backup** ($40-$70/yr) — covers backup through drains and sump pump failure - **Service line** ($30-$50/yr) — repairs underground pipes leading to your home - **Scheduled personal property** ($20-$100/yr per item) — full coverage on jewelry, watches, art, collectibles - **Extended replacement cost** (5% premium adder) — pays 25-50% above your dwelling limit if rebuild costs exceed it - **Inflation guard** (1-2% premium adder) — auto-increases dwelling coverage as construction costs rise - **Equipment breakdown** ($30-$60/yr) — covers HVAC, electrical panel, and appliance mechanical failures - **Mold** ($50-$200/yr where available) — raises mold sublimit to $25,000-$50,000 - **Water-damage upgrade** ($50-$150/yr) — closes some gradual-leak exclusions

For high-fire-risk zones in CA, **Safer From Wildfires** mitigation upgrades can earn 5-25% discounts — these are mitigation actions, not endorsements, but the effect is comparable.

**Florida ($7,900/yr average homeowners).** Roofs over 15 years old face binding issues. Citizens Property Insurance is the insurer of last resort. Sinkhole coverage is a separate endorsement. Hurricane deductibles are percentage-based (typically 2% of dwelling), so on a $400K home that's $8,000 out of pocket per named storm.

**Louisiana ($6,100/yr).** Twelve carriers exited or failed 2020-2023. Louisiana Citizens is overcrowded. Many homeowners pair a Citizens or surplus-lines policy with a wraparound difference-in-conditions (DIC) policy for liability + theft.

**California ($2,100/yr but rising).** State Farm, Allstate, and Farmers stopped writing new policies in 2022-2023. FAIR Plan enrollment exceeds 400,000 policies. Wildfire mitigation (defensible space, Class A roof, ember-resistant vents) earns up to 25% in stacked discounts.

**Texas ($4,800/yr).** Hail is the dominant peril along the I-35 corridor. Impact-resistant Class 4 roofing earns 10-35% discounts. Coastal counties may need TWIA (Texas Windstorm Insurance Association) coverage.

**Colorado ($4,400/yr).** Hail Alley along the Front Range. Many policies now exclude cosmetic-only damage. Class 4 roofing pays back in 4-8 years.

**Does homeowners insurance cover water damage?** Sudden and accidental events yes (burst pipes, ice dams, appliance overflow). External flooding no — that requires a separate flood policy.

**Does homeowners insurance cover roof replacement?** Yes for storm/hail/wind/falling-tree damage. No for wear and age. Watch for actual-cash-value coverage on older roofs.

**Does homeowners insurance cover mold?** Only if caused by a covered water event, with a low sublimit ($5K-$10K standard). Endorsements raise the limit.

**Does homeowners insurance cover foundation repair?** Almost never. Settling, earth movement, tree roots, and earthquakes are excluded. Vehicle impact and explosion are the rare exceptions.

**Does homeowners insurance cover dog bites?** Yes under liability, with breed exclusions at many carriers. State Farm and USAA don't use breed lists.

**Does homeowners insurance cover tree removal?** Only if the tree hits a covered structure. Removal limit is typically $500-$1,000 per tree.

**Does renters insurance cover theft?** Yes, including theft from your car and theft while traveling. Sublimits on jewelry, electronics, firearms, and cash apply.

**What's not covered by any standard homeowners policy?** Flood (need NFIP or private), earthquake (need a separate policy or endorsement), war, nuclear hazard, intentional acts, neglect, normal wear and tear, business activities, your own pets (medical), and ordinance/law upgrades beyond your sublimit.

**How do I check whether my policy is replacement cost or actual cash value?** Look at the declarations page next to Coverage A (Dwelling) and Coverage C (Personal Property). The words "Replacement Cost" or "ACV/Actual Cash Value" should appear there. If you only see "ACV," ask your carrier what it takes to upgrade — the premium delta is usually small.

**What's the single most underbought endorsement?** Sewer backup. $40-$70/yr to close a near-certain claim category over a 15-30 year homeownership period.

A standard homeowners policy is more comprehensive than most people think — and **less** comprehensive in three specific places: flood, earth movement, and gradual maintenance issues. The same policy form used in Maine and Florida produces wildly different real-world experiences because the high-frequency claims in each state are different.

If you read nothing else in your policy, read the **Exclusions** section. Then check whether your dwelling is at Replacement Cost or ACV. Then ask your agent about the four cheap endorsements that close the most common gaps: sewer backup, service line, scheduled personal property (if you own anything valuable), and extended replacement cost.

Use our calculators to estimate your dwelling replacement cost, your personal property value, and your premium impact from common decisions (deductible, roof age, credit score). Insurance is one of the few financial products where 30 minutes of upfront analysis can save thousands over the life of the policy.

For specific situations — claim filing, post-disaster recovery, disputed denials — see our dedicated guides on filing claims, fighting denials, and recovering from major events.