Exclusions

The perils that a homeowner's insurance policy does not cover are known as exclusions. These specify the events that will not receive coverage from a standard agreement. 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 offering. An HO-1 plan is not sold in most states anymore, as it concerned 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 offering, the HO-3, looks after most perils except for what is specified in the plan. The standard HO-3 exclusions are listed below.

• Law or ordinance. Building code enforcement and related laws are not covered. For example, your plan would not pay for construction to bring your home up to code.
• Earthquakes. Earth movements such as landslides, quakes, shockwaves, etc. are not included.
• Flood damage. Homeowners must purchase flood insurance separately in order to receive water damage coverage.
• Power failures.
• Neglect. If the customer failed to take reasonable action to protect the home, the plan will not look after the loss.
• War. Also includes civil wars and undeclared wars.
• Nuclear hazards.
• Intentional acts. Deliberate damage by the homeowner is not included.
• 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 included.