Floods, Earthquakes and Detached Structures Require Additional Coverage

LOS ANGELES , June 25, 2025 /PRNewswire/ -- While it's important to know what events are covered in your homeowners insurance policy, it's equally important to know what events are not covered. One of the biggest misunderstandings many policyholders have is the belief that, if their home is damaged or destroyed, their homeowners insurance policy will cover the cost of everything.

Understanding what your policy does — and does not — cover in advance of a peril can allow you to take the precautionary steps so you're not caught off guard following a home disaster.

"Homeowners insurance generally provides coverage for damage or loss to your home and personal possessions due to events like fire, sudden water damage from a burst pipe, or theft. However, certain situations may not be included in your policy," said Adam Bakonis, Sr. Product Manager State for Mercury Insurance. "For example, you may need to purchase separate flood or earthquake insurance to protect your home from coastal or river flooding, or seismic activity if you live in areas prone to these events, as they are usually not covered by a standard homeowners policy."

Here's a further breakdown of events that are typically not covered by a standard homeowners insurance policy:

• Floods: A typical policy does not cover flooding related to rivers, coastal storm surge, or water running off the surface of the ground or from under the ground into the home. To get flood coverage, your agent can help you purchase a separate flood insurance policy to protect your home.
  
  
• Earthquakes, landslides and mudslides: Homeowners insurance generally does not cover damage from any land movement, including earthquakes, landslides, mudslides and sinkholes. Like flood insurance, your agent can help you secure coverage through a separately purchased earthquake insurance policy or endorsement. Without it, you'll have to pay out of pocket to replace broken possessions, repair any damage or even rebuild your home. Residents in California with a homeowners policy from a participating insurer can purchase earthquake insurance from the California Earthquake Authority via their agent.
  
  
• Damage caused by homeowner neglect: Proper home maintenance can help prevent damage from neglect. Costs for an issue like mold, for example, will generally not be covered if it was brought on by repeated leakage over an extended period. If you notice an issue in need of repair, it's critical to address it quickly to avoid further damage.
  
  
• Animal damage: Damage from animals like bees, bedbugs, rats, termites and others are rarely covered, which means pest control falls upon the responsibility of the homeowner. Additionally, damage caused by a household pet is typically not covered, but insurers will often cover personal liability and legal fees associated with an event like a dog bite when it involves someone outside the household. However, certain breeds — often including pit bulls, among others — and dogs with a history of biting may not be covered.
  
  
• Detached structures: The detached structures on your property may not be covered by your homeowners policy if they are used for business purposes or rented out to others. You may be able to endorse your policy to extend coverage to the other structures when used for certain acceptable business purposes or when rented as a private residence.
  
  
• Construction damage: A typical policy will not protect against any losses or damages that arise from remodeling your home. Plus, you may be liable for injuries to workers, so it is best to only allow licensed, bonded and insured contractors to work on your home.
  
  
• Home-based business: A homeowners insurance policy will generally not cover a home-based business such as a daycare. For adequate protection, homeowners will need an endorsement or separate business insurance policy.

"The most important thing you can do to protect your home is to be informed about your homeowners insurance policy," said Bakonis. "Mercury recommends that you consult with an agent to reassess your homeowners insurance each year to ensure you have adequate coverage to protect your assets for years to come."

To learn more about homeowners insurance and what it typically covers, visit Mercury's blog.

About Mercury Insurance

Headquartered in Los Angeles, Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier offering personal auto, homeowners, and renters insurance directly to consumers and through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury also writes business owners, business auto, landlord, commercial multi-peril and mechanical protection insurance in various states.

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through more than 4,200 employees and a network of more than 6,340 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit www.MercuryInsurance.com or follow the company on Twitter or Facebook.

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SOURCE Mercury Insurance