What an exclusion actually is
An exclusion is the policy's "no" list. Standard exclusions appear in every homeowners policy in the country (flood, earthquake, war, intentional acts, wear and tear). Carrier-specific exclusions are added by endorsement to a particular policy — a dog liability exclusion on a Pit Bull household, a roof actual-cash-value endorsement on a 22-year-old roof, a wind exclusion on a coastal home. Exclusions narrow what an otherwise-open policy will pay.
The standard exclusions on every HO-3 policy
| Exclusion | What it means | How to cover it |
|---|---|---|
| Flood — rising surface water | No coverage for storm surge, river overflow, heavy-rain street flooding | NFIP or private flood policy |
| Earthquake, earth movement, sinkhole | No coverage for shaking, lateral movement, ground collapse | Earthquake endorsement or stand-alone (FL has a sinkhole rider) |
| War, nuclear hazard | Industry-wide exclusion since 1950s | Not insurable in the private market |
| Government action and seizure | Property taken by authority is not covered | Not insurable |
| Intentional acts by an insured | Damage you deliberately cause | Not insurable |
| Wear and tear, deterioration, maintenance | Gradual failure is not a covered peril | Maintenance is the homeowner's responsibility |
| Insect and vermin damage | Termites, rodents, carpenter ants | Pest control; some carriers offer a small termite rider |
| Mold (above a small cap) | Standard policy caps mold at $5,000 to $10,000 | Mold endorsement raises the cap to $25K to $50K |
| Settling and foundation movement | Long-term cracks and shifting | Not insurable; document new vs. old cracks |
| Power failure off premises | Spoiled food from a utility outage | Equipment breakdown / service-line endorsements |
| Ordinance or law upgrades | Code-required upgrades during repair | Ordinance or law endorsement (typically 10 to 50% of Cov A) |
| Business use | Inventory, client liability, business equipment over $2,500 | Business policy or in-home business endorsement |
| Motor vehicles licensed for road use | Covered under auto policy, not home | Auto policy |
| Aircraft | Including drones above a value threshold | Specialty drone or aircraft policy |
Common carrier-specific exclusions added by endorsement
- Dog liability exclusion: Removes Coverage E and F for any incident involving a specific dog or breed.
- Trampoline exclusion: Removes liability for any trampoline injury.
- Pool liability exclusion: Sometimes triggered by missing fence or diving board.
- Roof on Actual Cash Value: Pays depreciated value of roof regardless of cause of loss.
- Cosmetic damage exclusion (wind/hail): Pays for functional damage only; aesthetic dings to siding or shingles are not covered.
- Wind exclusion (coastal): Wind moved to a separate wind-only policy through the state wind pool.
- Vacancy or unoccupancy exclusion: Most policies exclude vandalism and water-discharge claims after 30 or 60 days of vacancy.
- Short-term rental exclusion: No liability for paying guests without an endorsement.
- Service line exclusion (default): Buried water, sewer, and electrical lines from the meter to the house are excluded; an inexpensive endorsement adds them back.
The two exclusions that surprise homeowners most
1. Anti-concurrent causation. If two causes of loss happen at the same time and one is excluded (typically flood), the entire loss can be denied even if the other cause (wind) is covered. This is why hurricane claims along the Gulf Coast frequently end up in litigation: the wind part is covered, the flood part is not, and the anti-concurrent-causation clause lets the carrier deny both.
2. Faulty workmanship. Damage caused by defective construction, repair, or maintenance is excluded. A pipe that fails because it was installed incorrectly is not a covered peril even though a pipe failure normally is. Adjusters scrutinize the cause closely.
How to read exclusions on your declarations page
- Locate the Forms and Endorsements section — the list of every endorsement attached.
- Each endorsement is identified by a form number (for example HO 04 91 for additional limited fungi). Look up each one.
- Compare your endorsement list to the standard ISO HO-3 form to see what has been removed.
- Pay close attention to any endorsement with the word exclusion, limitation, or restriction in the title.
How Agents can help
Agents pull the Forms and Endorsements list from the declarations page, decode each form number, and identify exclusions that materially change coverage — roof actual-cash-value, cosmetic damage, dog liability, mold, service line, ordinance or law. For homeowners trying to remove a carrier-imposed exclusion, Agents identify carriers that write the underlying risk without the exclusion, and quote the difference.