When you buy property insurance, you expect your home or building to be protected against major disasters. But here’s the catch—not all disasters are automatically covered. Events like fires and thefts are usually included, but floods and earthquakes often require separate policies.
This guide breaks down the key types of disasters your property insurance may or may not cover—and what steps you can take to fill in the gaps and stay fully protected in 2025.
Why Understanding Coverage Details Matters
Disasters don’t wait until you’re fully prepared. Homeowners and business owners alike often assume their property insurance has them covered for “everything.” The problem? Assumptions can lead to unexpected out-of-pocket costs after a claim is denied.
Whether you’re insuring a home, rental, or commercial property, knowing what disasters are included (and which aren’t) can save you thousands—and give you peace of mind.
1. Fire and Smoke Damage – Usually Covered
Good news: Most standard property insurance policies include coverage for fire and smoke damage. This includes:
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Structural repairs to the building
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Replacement of damaged belongings
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Temporary housing (if your home is uninhabitable)
Even accidental fires caused by electrical issues or kitchen mishaps are typically covered. However, fire caused by neglect (e.g., failure to maintain wiring) or arson by the policyholder may void your claim.
2. Theft and Vandalism – Commonly Covered with Conditions
Theft is generally covered under both homeowners and commercial property policies. Insurers will pay for stolen or vandalized items, as well as repairs to broken doors or windows.
Important note: Coverage limits apply to high-value items like jewelry, art, or electronics. You may need a rider or endorsement to fully protect these assets.
Tip: Document your valuables and keep an updated home inventory to make claims easier.
3. Flood Damage – Not Covered by Most Standard Policies
Flooding is one of the most misunderstood and underinsured risks. Standard property insurance does not cover flood damage caused by:
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Hurricanes
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Storm surges
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Overflowing rivers
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Flash floods
To be protected, you need a separate flood insurance policy, typically through the National Flood Insurance Program (NFIP) or a private insurer.
If you live in a flood-prone area, this coverage is essential—some mortgage lenders even require it.
4. Water Damage – Sometimes Covered
While flooding isn’t covered, certain types of water damage are, such as:
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Burst pipes
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Leaking appliances
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Roof leaks (if caused by a covered peril)
Not covered: Gradual leaks, foundation seepage, and flooding from external water sources.
Always clarify the difference between sudden vs. gradual damage in your policy’s fine print.
5. Earthquakes – Usually Not Covered
Like floods, earthquakes are not included in most standard property insurance policies. If you live in states like California, Alaska, or regions near fault lines, you’ll need to purchase earthquake insurance separately.
This type of coverage can help repair your home’s structure and replace damaged belongings—but it often comes with a high deductible.
6. Windstorms and Hail – Covered in Most Cases
Tornadoes, hurricanes, and severe windstorms are generally covered unless you live in a high-risk area. In those regions, you may need a windstorm rider or a separate deductible.
For example: Gulf Coast homeowners often need additional hurricane insurance.
Make sure to ask about:
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Windstorm exclusions
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Named storm deductibles
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Roof damage clauses
7. Mold, Pests, and Wear & Tear – Not Typically Covered
Most policies do not cover gradual damage or maintenance issues like:
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Mold (unless from a covered water incident)
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Pest infestations (termites, rodents)
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General wear and tear or aging systems
These are considered preventable with proper upkeep, and insurance companies won’t pay for negligence.
How to Fill the Gaps in Your Property Insurance
Here’s how to ensure you’re fully covered:
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Request a policy review annually to see what’s included and what’s not.
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Add endorsements or riders for valuable items or perils like mold or sewer backup.
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Consider separate policies for flood, earthquake, or wind damage if you live in a high-risk zone.
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Work with an experienced insurance broker to tailor a policy to your specific location and property type.
Conclusion: Know Before Disaster Strikes
So, what disasters does property insurance cover? The answer: it depends on your policy and where you live. Fires, theft, and certain weather events are often covered, but floods, earthquakes, and gradual damage usually are not.
The key is to read the fine print and be proactive about filling in any gaps. The worst time to find out you’re not covered is after the disaster has already hit.