FEMA, FloodSmart and the Insurance Information Institute (III) all note that flood damage is typically excluded from standard homeowners insurance, and the III also identifies other peril coverage, such as earthquakes, sewer backup and maintenance-related damage, as common exclusions.
For homeowners in New England, understanding those exclusions matters. From coastal flooding and inland flash flooding in Massachusetts to the possibility of earth movement and other less common but still costly events in Vermont and across the region, coverage gaps can leave homeowners facing major out-of-pocket expenses.
The Dowd Snapshot: Key Takeaways
- Standard homeowners insurance typically does not cover flood damage.
- Earthquake and other earth movement losses are also commonly excluded.
- Sewer backup, drain backup and sump overflow may require separate coverage or an endorsement.
- Certain losses tied to wear and tear, neglect or poor maintenance are usually not covered by homeowners insurance.
- The best way to identify homeowners exclusions is to review your policy before you need to file a claim.
What Natural Disasters Are Not Covered by Homeowners Insurance?
This is one of the most common questions we hear. The answer depends on the policy, but standard homeowners insurance typically does not cover:
- Flooding
- Earthquakes
- Other forms of earth movement, such as landslides, mudslides or sinkhole-related losses in some situations
- Sewer or drain backup, unless added by endorsement, in many cases
That does not mean your policy provides no protection from severe weather. Many homeowners policies do cover certain causes of loss such as wind, hail, fire or lightning. But when water comes from rising ground water, storm surge, overflowing rivers or widespread surface flooding, that usually falls outside standard homeowners coverage and into the realm of flood insurance.
Why Flood Insurance Matters in Massachusetts
When people hear “flood insurance MA,” they often think only of coastal homes. That can be a costly misunderstanding.
Flood risk is not limited to oceanfront properties. Heavy rain, rapid snowmelt, overwhelmed storm drains, nearby streams and low-lying areas can all contribute to flooding. FEMA’s Flood Map Service Center exists because flood risk varies by address and community, and flood insurance may be important well beyond the coastline.
For Massachusetts homeowners, reviewing flood exposure is especially important if your property is near the coast, close to a river or pond, in a neighborhood with drainage issues or in an area where flood maps have changed over time. Even homeowners outside high-risk areas may want to ask whether flood insurance is worth considering, because risk does not stop at the edge of a mapped flood zone.
Does Homeowners Insurance Cover Earthquakes?
Usually, no. Standard homeowners insurance commonly excludes earthquake damage and other earth movement losses. The III lists earthquakes among the major exclusions that often require separate coverage.
That is why “earthquake insurance Vermont” is not as strange a search query as it may sound. Vermont is not California, but USGS maintains state-specific seismicity and hazard information for Vermont because earthquakes do occur in the state and throughout New England. For some homeowners, especially those concerned about structural damage, masonry issues or older homes, it may make sense to ask whether earthquake coverage is available and appropriate.
Other Homeowners Peril Coverage Exclusions to Know
Flood and earthquake exclusions get the most attention, but they are not the only gaps homeowners should understand.
Sewer Backup and Drain Backup
A backed-up sewer or drain can cause expensive damage, but it is not always covered under a standard homeowners policy. Sewer backup is commonly excluded and often must be added separately or through an endorsement. It is also not the same thing as flood coverage.
Wear and Tear or Deferred Maintenance
Insurance is designed for sudden and accidental losses, not ongoing maintenance problems. Damage caused by neglect, repeated seepage or long-term deterioration is often excluded. The III lists maintenance-related damage among the common gaps homeowners should understand.
Ground Movement and Related Perils
Depending on the policy and the cause of loss, events tied to earth movement may fall outside standard homeowners protection. That is one reason it is important not to assume every “natural disaster” is covered the same way.
Why Reviewing Coverage Gaps Matters
The biggest risk is not always the event itself. It is finding out after a loss that your policy was never designed to cover it.
Homeowners insurance is essential, but it is not all-inclusive. A review can help identify whether your current policy aligns with your location, your home’s characteristics and your comfort level with risk. For some homeowners, that review may lead to no changes. For others, it may reveal a need for peril coverage such as flood insurance, an earthquake endorsement or backup coverage that fills a meaningful gap.
A Smart Next Step for New England Homeowners
If you own a home in New England, now is a good time to review your homeowners exclusions before peak storm season and unexpected weather events create costly surprises.
Schedule an appointment to talk about your coverage gaps and how we can help ensure you’re protected from whatever life throws at you.