No, standard homeowners insurance policies cover only listed or covered causes of loss, and many perils such as floods or earthquakes stay excluded.
Homeowners insurance sounds simple: you pay the bill and expect help when something bad happens. In practice every policy draws a line between covered perils and excluded ones, and that line matters when a claim arrives. The stakes can feel high for any owner.
This guide explains what insurers mean by perils, how policy forms handle them, why exclusions exist, and how you can close gaps.
Core Coverage Question: Are All Perils Included In Homeowners Insurance Policies?
The short answer to “are all perils included in homeowners insurance policies?” is no. Property insurance does not promise payment for every cause of damage. The contract either lists covered perils or lists excluded ones, and that structure controls claims.
Most modern homeowners policies use one of two models. A named perils policy covers only causes of loss on a set list, such as fire, lightning, windstorm, or theft. An open perils policy, often called “all risk,” covers every cause of loss except those listed as exclusions.
| Peril | Usually Covered? | Typical Treatment In Homeowners Policies |
|---|---|---|
| Fire Or Lightning | Yes | Standard policies almost always cover sudden fire or lightning. |
| Windstorm Or Hail | Often | Often covered; some coastal areas use special deductibles or exclusions. |
| Theft | Yes | Covered up to limits; items such as jewelry or artwork may have lower caps. |
| Water Damage From Burst Pipe | Often | Sudden, accidental leaks are often covered; long term seepage usually is not. |
| Flood From Rising Water | No | Surface flooding and storm surge usually need separate flood insurance. |
| Earthquake Or Land Movement | No | Shaking, landslide, and sinkhole usually require extra earthquake or earth movement coverage. |
| Wear, Tear, Or Neglect | No | Maintenance issues, gradual damage, and construction defects fall outside normal property coverage. |
| Infestation (Termites, Rodents) | No | Pest damage is treated as preventable and excluded in standard forms. |
These patterns show why the phrase “all perils” can mislead. Even an open perils policy starts with exclusions for floods, earth movement, war, nuclear hazards, and gradual problems such as rust or mold. Industry guides from groups such as the Insurance Information Institute explain that separate flood or earthquake coverage is often needed when those risks apply to your location.
Perils Included In Your Homeowners Insurance Policy Coverage
When people ask whether all perils are included in homeowners insurance policies, they usually want to know which events are actually handled by a standard package. Many policies follow models similar to the HO-3 and HO-5 forms, and while wording varies by country and carrier, the list of covered perils tends to share common themes.
You will usually see protection for sudden, accidental events that you cannot easily control. That group includes fire, smoke, lightning, wind, hail, theft, vandalism, falling objects, damage from vehicles, and many types of burst pipe or accidental water release. Liability coverage for injuries on your property also sits alongside these protections, though it does not depend on perils in the same way.
Named Perils Policies In Homeowners Insurance
A named perils policy spells out coverage with a list. Each named cause of loss can trigger payment, and anything not on that list is left out. Basic forms might list around ten perils, broader forms around sixteen.
Because named perils coverage is narrower, it often appears on older policy forms, budget products, or second homes. The upside is a lower price. The trade off is the need to compare the list against real risks such as coastal windstorm or post-storm mold.
Open Perils Policies And Exclusion Lists
Open perils coverage flips the structure. Instead of listing what is covered, the policy says the dwelling or contents are covered for all direct physical loss except the perils named in the exclusions section. Regulators note that flood, earthquake, and poor maintenance almost always appear on that list.
Under an HO-3 style contract, the building often has open perils wording while personal property stays on named perils. Under an HO-5 style contract, both building and contents may have open perils wording, but the exclusions section still carves out flood, earth movement, wear and tear, mold beyond set limits, power failure off the premises, war, and similar hazards.
How The Peril List Plays Out In Real Claims
The phrase “are all perils included in homeowners insurance policies?” feels abstract until you picture real claims. A tree falls on the roof in a windstorm, lightning hits the house, or a thief grabs electronics through a window. These events usually sit inside the covered column.
Now compare those claims with a river that overflows into the basement, foundation movement over many years, or termites that slowly hollow out framing. Insurers usually treat these losses as excluded either because they are separate catastrophe risks that need their own pricing or because they stem from long term maintenance problems.
Perils That Are Commonly Excluded
While every insurer writes its own contract, the same large exclusions show up again and again. Flood in all its forms, including storm surge and surface water, usually sits outside a standard homeowners policy, and earthquake or other earth movement such as landslide, sinkhole, and subsidence sit outside as well. Government backed flood programs and stand alone earthquake coverage can fill those gaps when you buy them as extra policies or endorsements.
Damage from wear and tear, corrosion, rust, mold that grows over time, and poor maintenance rarely triggers coverage. Insurers expect the homeowner to fix small problems before they become big ones. Infestation by insects or rodents lives in the same category, along with gradual damage from humidity or condensation.
Policies also tend to exclude war, nuclear events, and intentional damage. Some forms carve out specific exclusions for ordinance or law, which means added costs to bring an older building up to current building codes after a loss. You can often buy code upgrade coverage as an add on to handle that part of a claim.
Conditions, Limits, And Deductibles
Perils do not sit alone in the contract. Conditions, limits, and deductibles all shape how much money you actually receive when a covered loss happens. A windstorm may be covered in theory, but a high percentage deductible in a coastal zone can still leave you paying a large share of the repair bill.
Sub limits apply to certain categories of property, such as jewelry, fine art, cash, or business equipment in the home. Those limits apply even when the peril itself is covered. If the contract caps theft of jewelry at a modest figure, a burglary claim that wipes out a large collection may still sit mostly on your shoulders unless you have scheduled those items separately.
How To Read Your Policy For Perils And Exclusions
Many people only skim their policy packet, because the legal language feels dry and dense. A better tactic is to walk through four areas that reveal how your insurer treats perils: the declarations page, the insuring agreement, the exclusions section, and the endorsements or riders attached at the end.
| Policy Section | What To Look For | Peril Questions To Ask |
|---|---|---|
| Declarations Page | Policy form, limits, deductibles, and endorsements. | Does the form use named perils, open perils, or both? |
| Insuring Agreement | Core promise that explains which losses the insurer covers. | Does the wording say “named perils” or “all risks except for listed exclusions”? |
| Exclusions Section | List of perils and situations that the policy will not cover. | Are flood, earth movement, mold limits, or wear and tear clearly listed? |
| Conditions Section | Rules about duties after loss, proof of damage, and claim deadlines. | What actions do you need to take to preserve coverage after a loss? |
| Endorsements Or Riders | Extra pages that add, restrict, or clarify coverage. | Do you see add ons for water backup, ordinance or law, or special items? |
Consumer resources from regulators and insurance trade groups give plain language breakdowns of these sections and often provide sample policies. The National Association of Insurance Commissioners, as one example, notes that the exclusions section spells out perils the policy will not cover and points to flood and earthquake as common cases. The Insurance Information Institute publishes similar homeowner coverage checklists that show where separate flood and earthquake policies fit into the picture.
Practical Takeaways For Homeowners
Homeowners insurance is meant to shield your finances from sudden disasters, not every problem a house can face. Once you see how perils and exclusions work, that question about perils turns into a simple practical checklist of which events are covered, which are not, and which you might add for your own home.
Start by checking whether your contract uses named perils or open perils wording for building and contents. Then scan exclusions and endorsements with local risks in mind: nearby water, earthquake zones, or older housing that may bring code upgrade issues.
If you see gaps around flood, earth movement, water backup, valuables, or home based business gear, talk with a licensed insurance agent or broker about options. Flood policies, earthquake coverage, water backup endorsements, and scheduled personal property riders can help match the policy to your real risk profile.
Treat your homeowners insurance paperwork as a living contract instead of a one time purchase. Review it after big life changes, renovations, or moves, and ask clear questions about any peril or exclusion you do not recognize. That habit gives your coverage a better chance of lining up with the damage that might actually reach your front door.