A standard homeowner's insurance policy (HO-3) covers a lot — but the exclusions are where people get hurt. Flooding, earthquakes, and sometimes even wind damage are explicitly excluded. Understanding your policy before a disaster is the most important financial preparation you can make.
What a Standard Policy Covers
Fire & Smoke
Wildfire damage is covered by standard HO-3 policies in most states — but some insurers are pulling out of high-risk fire areas entirely.
Wind & Hail
Generally covered, but coastal properties may have separate hurricane deductibles of 2–5% of insured value — not a flat dollar amount.
Lightning
Direct lightning strikes and resulting fire or electrical damage are covered. Surge damage to electronics may require additional coverage.
Theft & Vandalism
Personal property and structural damage from theft or vandalism is covered, subject to your deductible.
Flooding
Explicitly excluded from every standard homeowner's policy. Requires separate NFIP or private flood insurance with a 30-day waiting period.
Earthquakes
Excluded from standard policies. Requires a separate earthquake policy or endorsement. Critical in California, Pacific Northwest, and New Madrid zone.
Sewer Backup
Usually excluded but available as an inexpensive rider. Sewer backup during heavy rain is one of the most common and overlooked claims.
Hurricane Wind vs. Surge
Wind damage from a hurricane is covered. Storm surge (flooding) is not. The split between the two causes frequent disputes after major storms.
Finding and Filling Your Gaps
1. Flood Insurance
Flooding is the most common and costly natural disaster in the US — and it is explicitly excluded from every standard homeowner's policy. If your home floods without separate flood insurance, you pay for everything out of pocket.
NFIP (National Flood Insurance Program)
Backed by FEMA, NFIP is the most common source of flood insurance. Available to any homeowner in a participating community regardless of flood zone. Maximum coverage is $250,000 for the structure and $100,000 for contents.
Private Flood Insurance
Private insurers offer flood coverage with higher limits, broader coverage, and sometimes lower premiums than NFIP. Worth comparing — especially for high-value homes that exceed NFIP limits.
Visit msc.fema.gov. Your zone determines your risk level — but 40% of claims come from outside high-risk zones.
A licensed surveyor can provide an elevation certificate showing your home's elevation relative to the base flood elevation. Can significantly reduce your NFIP premium.
Contact your current insurer and at least two private flood insurers. Neptune, Palomar, and Wright Flood offer competitive private policies.
Don't wait for storm season. The 30-day waiting period means you need to buy months before you might need it.
2. Wind & Hurricane Coverage
Standard homeowner's policies cover wind damage — but the details matter enormously in coastal areas.
Hurricane Deductibles
Most coastal policies have a separate hurricane deductible expressed as a percentage of your home's insured value — typically 2–5%. On a $400,000 home, a 5% hurricane deductible means you pay the first $20,000 out of pocket before insurance kicks in.
Wind Pool Policies
In high-risk coastal areas, private insurers may refuse to cover wind damage. State-run wind pools (like Florida Citizens or Texas Windstorm) provide coverage of last resort — but often at higher premiums and with lower coverage limits.
3. Wildfire Coverage
Wildfire damage is covered by standard homeowner's policies — but the market is changing rapidly in high-risk areas.
Non-Renewal Crisis
Major insurers including State Farm, Allstate, and Farmers have stopped writing new policies or non-renewed existing policies in high-risk California ZIP codes and other fire-prone areas. If you're in a high-risk area, verify your current coverage is still active.
FAIR Plans
If you can't get private coverage, your state's FAIR Plan (Fair Access to Insurance Requirements) provides basic fire coverage as a last resort. Coverage is limited and expensive — but it's something.
4. Filing a Claim — What to Do
The actions you take in the first hours after a disaster significantly affect your claim outcome.
Free Insurance Coverage Checklist
Review your current coverage, identify gaps, and know exactly what questions to ask your insurer — all in one checklist.