A homeowners insurance policy is designed to protect the homeowner and their property against various risks, such as fire, theft, and liability. However, not everyone is considered an insured under a homeowners policy. Understanding who is not covered can help homeowners avoid gaps in coverage and ensure they have the appropriate protection in place. Below, we’ll explore who is typically excluded from coverage under a standard homeowners insurance policy and why.

1. Tenants or Renters

• Why They’re Not Insured: A homeowners policy is designed for the property owner, not the tenant. If you rent out your home or a portion of it, the tenant is not covered under your policy. Their personal belongings, liability, and other risks are their responsibility.
• What They Need: Renters should purchase a renters insurance policy to cover their personal property and liability. This is entirely separate from the homeowner’s policy.

2. Roommates

• Why They’re Not Insured: Unless explicitly named on the policy, roommates are generally not considered insured parties. Homeowners insurance typically covers the named policyholder and their immediate family members living in the household.
• What They Need: Roommates should obtain their own renters insurance policy to protect their belongings and liability.

3. Guests or Visitors

• Why They’re Not Insured: While guests may be covered under the liability portion of a homeowners policy if they are injured on the property, their personal belongings are not covered. For example, if a guest’s laptop is stolen while visiting, the homeowner’s policy will not reimburse them.
• What They Need: Guests should rely on their own insurance policies, such as renters or homeowners insurance, to cover their personal property.

4. Contractors or Workers

• Why They’re Not Insured: Contractors, repair workers, or landscapers working on the property are not covered under the homeowner’s policy. If they are injured while working, the homeowner’s liability coverage may not apply because they are expected to have their own insurance.
• What They Need: Contractors should carry their own workers’ compensation and general liability insurance to protect themselves and their employees.

5. Unrelated Adults Living in the Home

• Why They’re Not Insured: If an unrelated adult (e.g., a friend or distant relative) lives in the home but is not named on the policy, they may not be covered. Homeowners insurance typically extends coverage to the policyholder, their spouse, and their immediate family members (e.g., children).
• What They Need: Unrelated adults should consider purchasing their own renters insurance policy to cover their personal property and liability.

6. Landlords (If You’re Renting Out the Property)

• Why They’re Not Insured: If you rent out your home, your standard homeowners policy may not cover you as a landlord. Landlords face different risks, such as tenant-related damages or liability claims, which require specialized coverage.
• What They Need: Landlords should purchase a landlord insurance policy (also called a dwelling fire policy) to protect the property and their liability as a property owner.

7. Businesses or Home-Based Businesses

• Why They’re Not Insured: A standard homeowners policy does not cover business-related liabilities or property. For example, if a client is injured while visiting your home office, your homeowners policy may not provide coverage.
• What They Need: Home-based business owners should purchase a separate business insurance policy or add a home business endorsement to their homeowners policy.

8. High-Risk Individuals

• Why They’re Not Insured: Some individuals may be excluded from coverage due to high-risk factors, such as a history of frequent claims or criminal activity. Insurance companies may explicitly exclude these individuals from the policy.
• What They Need: High-risk individuals may need to seek specialized insurance or work with an insurance agent to find a policy that accommodates their situation.

9. Pets (for Liability Coverage)

• Why They’re Not Insured: While some homeowners policies include liability coverage for pet-related incidents (e.g., dog bites), certain breeds or exotic pets may be excluded. Additionally, pets themselves are not insured under the policy.
• What They Need: Pet owners may need to purchase additional liability coverage or a separate pet insurance policy to cover veterinary expenses.

10. Unoccupied or Vacant Homes

• Why They’re Not Insured: If a home is left unoccupied or vacant for an extended period (typically 30-60 days), the homeowners policy may no longer provide coverage. Vacant homes are considered higher risk for vandalism, theft, and other damages.
• What They Need: Homeowners should purchase a vacant home insurance policy if the property will be unoccupied for an extended period.

11. Intentional Acts or Criminal Behavior

• Why They’re Not Insured: Homeowners insurance does not cover intentional acts or criminal behavior by the policyholder or anyone else in the household. For example, if someone intentionally sets fire to the home, the policy will not cover the damages.
• What They Need: There is no insurance coverage for intentional acts. Legal consequences and financial responsibility fall on the individual who committed the act.

12. Government Entities

• Why They’re Not Insured: If a government entity (e.g., a city or state) causes damage to your property (e.g., during construction or due to negligence), your homeowners policy will not cover the damages. Government entities are typically protected by sovereign immunity.
• What They Need: Homeowners may need to pursue legal action or file a claim with the government entity directly.

13. Acts of War or Terrorism

• Why They’re Not Insured: Standard homeowners policies exclude damages caused by acts of war, terrorism, or nuclear events. These events are considered catastrophic and uninsurable under typical policies.
• What They Need: Specialized insurance policies may be available for terrorism coverage, but they are often expensive and limited in scope.

14. Flood or Earthquake Damage

• Why They’re Not Insured: Floods and earthquakes are typically excluded from standard homeowners policies. These natural disasters require separate coverage.
• What They Need: Homeowners in high-risk areas should purchase flood insurance through the National Flood Insurance Program (NFIP) or a private insurer and earthquake insurance if applicable.

15. Mold or Wear and Tear

• Why They’re Not Insured: Homeowners insurance does not cover damages caused by mold, wear and tear, or lack of maintenance. These are considered preventable issues that fall under the homeowner’s responsibility.
• What They Need: Homeowners should address maintenance issues promptly and consider additional coverage for mold if necessary.

Conclusion

Understanding who is not covered under a homeowners insurance policy is just as important as knowing who is covered. By identifying these exclusions, homeowners can take steps to fill gaps in coverage, whether by purchasing additional policies, endorsements, or encouraging others to obtain their own insurance. Always review your policy carefully and consult with your insurance agent to ensure you have the right protection for your unique situation.