Exclusions

The perils that a homeowner’s insurance policy does not cover are known as exclusions. Exclusions specify the events that will not receive coverage from a standard policy. The types and extent of exclusions contained within a policy will depend on whether it is classified as an HO-1, HO-2, or HO-3 policy. An HO-1 policy is not sold in most states anymore, as it covers only a small list of perils. An HO-2 policy, also called a broad form, covers 16 named perils, including events like fire, wind, theft, etc. The most popular policy, the HO-3, covers most perils except for the exclusions named in the policy. The standard HO-3 exclusions are listed below.

• Law or ordinance. Building code enforcement and related laws are not covered. For example, your policy would not pay for construction to bring your home up to code.
• Earthquakes. Earth movements such as landslides, quakes, shockwaves, etc. are not covered.
• Flood damage. Homeowners must purchase flood insurance separately in order to receive water damage coverage.
• Power failures.
• Neglect. If the policyholder failed to take reasonable action to protect the home, the policy will not cover the loss.
• War. Also includes civil wars and undeclared wars.
• Nuclear hazards.
• Intentional acts. Deliberate damage by the homeowner is not covered.
• Government action. Seizure or destruction of the property by the government or other public authority is not protected.
• Loss to property. Losses resulting from poor workmanship, faulty zoning, or bad construction are not covered.