What Does Homeowners Insurance Cover?

Understanding your homeowners insurance policy is the difference between a covered repair and a financial disaster. Most standard policies (HO-3) are “open peril” for your dwelling, meaning you are covered for everything except what is specifically excluded.

Here is the breakdown of what your insurance covers, based on the most common claims and homeowner concerns.

1. Natural Disasters and Weather Damage

Fire is a “named peril” in almost every policy. This includes damage from smoke and the water used by the fire department to extinguish the flames. In states prone to wildfires, ensure your “Loss of Use” coverage is sufficient to cover hotel stays.

Tornadoes and hurricanes

• Tornadoes: Yes, wind damage from tornadoes is standard.
• Hurricanes: This is complex. Wind damage is usually covered (sometimes with a separate “windstorm deductible”), but flood damage from storm surges is NOT covered. You need a separate NFIP or private flood policy for that.

Roof leaks and replacement

• Leaks: If a tree falls or hail hits your roof, the resulting leak is covered.
• Replacement: Insurance covers “sudden and accidental” damage. If your roof is 30 years old and leaking due to wear and tear, insurance will likely deny the claim.

2. Water, Plumbing, and Mold

This depends on the source.

• Covered: Sudden bursts (like a frozen pipe or a dishwasher hose snapping).
• Not Covered: Gradual leaks that you ignored, or water backing up through sewers and drains (unless you have a “Sewer Backup” rider).

Mold

Only if the mold is a direct result of a covered peril. For example, if a pipe bursts and mold grows before you can dry it, it’s usually covered. If mold grows because your basement is naturally damp and lacks a dehumidifier, it is considered a maintenance issue and is excluded.

Plumbing and boilers

Insurance covers the damage caused by a plumbing failure, but it rarely pays for the plumbing repair itself. For example, if your boiler explodes, the damage to your walls is covered, but buying a new boiler usually falls on the homeowner unless you have “Equipment Breakdown” coverage.

3. Liability and Personal Property

Dog bites

Most policies provide liability protection if your dog bites someone. However, many insurers maintain a “restricted breed list.” If you own a breed on that list without disclosing it, your claim could be denied.

Theft and storage units

• Theft: Stolen items from your home are covered.
• Storage Units: Most policies extend “off-premises” personal property coverage to items in storage units, though often at a reduced limit (typically 10% of your total personal property coverage).

4. Landscaping and External Structures

Tree removal

• If the tree hits a covered structure (like your house): Yes, the policy will pay to remove the tree and fix the house.
• If the tree just falls in the yard: Generally, no. Unless the fallen tree is blocking a driveway or a ramp for the disabled, removal is a maintenance cost.

Foundation repair

Rarely. Foundation issues caused by “settling,” “earth movement,” or “hydrostatic pressure” are standard exclusions. Coverage only triggers if a covered peril (like an explosion or a massive plumbing burst) caused the foundation to crack.

5. What is NOT Covered? (Common Exclusions)

Does homeowners insurance cover termite damage?

No. Termites and other pests (rodents, bedbugs) are considered preventable maintenance issues.

Does homeowners insurance cover earthquakes?

No. Standard policies exclude earth movement. You must buy a separate earthquake endorsement or policy.

Quick-Reference

Question	Covered?	Note
Fire/Wildfire	Yes	Includes smoke damage.
Theft	Yes	Even if the theft happens away from home.
Mold	Sometimes	Only if caused by a sudden water leak.
Termites	No	Considered a maintenance issue.
Roof Leaks	Sometimes	Only if caused by wind, hail, or falling objects.
Dog Bites	Yes	Check for breed restrictions in your policy.
Tree Removal	Sometimes	Only if it hits a structure or blocks access.
Boilers	No	Usually requires “Equipment Breakdown” rider.

Conclusion: How to Ensure You Are Protected

To avoid out-of-pocket disasters, review your “Declarations Page” annually. If you live in a high-risk area, consider adding riders for Flood, Earthquake, and Sewer Backup, as these are the three most common reasons homeowners find themselves unprotected.

FAQs

Does homeowners insurance cover water damage?

Yes, but only if the damage is “sudden and accidental.” Examples include a burst pipe or a washing machine overflow. It does not cover water damage from a lack of maintenance (a slow leak you ignored for months) or rising floodwaters.

Does homeowners insurance cover plumbing?

Insurance covers the results of a plumbing failure (ruined drywall or flooring), but it generally does not pay for the actual plumbing repair itself. Replacing the pipe that burst is usually a homeowner’s out-of-pocket expense.

Does homeowners insurance cover mold?

Mold is covered only if it is a direct result of a “covered peril,” such as a pipe bursting. If mold appears due to high humidity, poor ventilation, or a flood, it is excluded from standard policies.

Does homeowners insurance cover boilers?

Standard policies cover damage caused by a boiler explosion, but they do not cover mechanical failure or “wear and tear.” For boiler replacement coverage, you typically need an “Equipment Breakdown” endorsement.

Does homeowners insurance cover fire and wildfires?

Yes. Fire and wildfires are standard covered perils. This includes damage from flames, smoke, and the ash produced by nearby wildfires.

Does homeowners insurance cover tornadoes and tornado damage?

Yes. High winds, including those from tornadoes, are covered. This includes damage to your roof, windows, and the structure of your home.

Does homeowners insurance cover hurricane damage?

Hurricane coverage is split. Wind damage is covered (though a higher hurricane deductible may apply), but flood damage from storm surges is excluded. You must have a separate flood insurance policy for hurricane-related flooding.

Does homeowners insurance cover termite damage?

No. Termites and other pests are considered a maintenance issue. Because termite damage happens over a long period, it is not considered “sudden or accidental.”

Does homeowners insurance cover foundation repair?

Generally, no. Foundation issues caused by settling, cracking, or earth movement are excluded. It is only covered if a specific event (like an explosion or a covered water leak) directly caused the foundation to fail.

Does homeowners insurance cover roof leaks?

A roof leak is covered if it is caused by a covered event, such as a fallen tree or a hail storm. If the leak is due to the roof being old and past its lifespan, the claim will likely be denied.

Does homeowners insurance cover roof replacement?

Insurance will pay for a full roof replacement if a covered peril (like a major windstorm or fire) destroys the roof. They will not replace a roof that has simply reached the end of its functional life.

Does homeowners insurance cover dog bites?

Yes, under the liability portion of your policy. However, some insurance companies will exclude certain “high-risk” breeds or may increase your premiums if you own one.

Does homeowners insurance cover theft?

Yes. Theft of personal property is covered whether it happens inside your home or while you are traveling.

Does homeowners insurance cover storage units?

Yes. Most policies provide “off-premises” coverage for items in a storage unit. Note that this is often limited to 10% of your total personal property coverage amount.