Home Insurance Exclusions: What Isn't Covered by House Insurance?

You might claim after a roof leak, a burst pipe, or damage discovered after bad weather and assume your home insurance is there for exactly that sort of problem. Yet your insurer may say the real cause was not a sudden event at all, but wear and tear, poor maintenance, or another exclusion in the policy wording.

So, what do you do now? In this guide, we’ll look at what your home insurance typically does (and does not) cover, typical insurer tactics to be aware of, and how to make your claim happen.

What Is Not Typically Covered Under a Standard Home Policy?

Home insurance exclusions are the parts of the policy that say when buildings and contents cover does not apply. Most home insurance is designed for sudden and unexpected events, such as an escape of water, storm damage, theft, or fire, rather than damage that was inevitable because something wore out.

Main Home Insurance Exclusions

The main exclusions and restrictions usually appear in three places:

• The section you are claiming under: This sets out the cover, limits, and exclusions for that type of claim, such as buildings, contents, escape of water, theft, or accidental damage.

• The general exclusions: These usually sit near the back of the policy wording and apply across the whole policy.

• The policy schedule: This records the sums insured, excesses, single-item limits, and any special terms applying to your home.

Other Common Home Insurance Exclusions

• Wear and tear: Home insurance usually does not cover things that have simply reached the end of their useful life, such as old seals, old roof materials, or ageing pipework.

• Gradual deterioration: Damage that develops slowly over time is often excluded, especially where no single sudden event can be identified.

• Poor maintenance: Insurers may refuse a claim where they say the damage resulted from not maintaining the property, rather than from an insured event.

• Unoccupied property: Most policies restrict cover if the home is left empty for longer than the consecutive-day limit in the policy wording, often 30 or 60 days depending on the policy.

• Business use: Running a business, seeing customers at home, storing business stock, or using the property for short-term rentals may fall outside standard home cover unless declared.

• DIY damage: Standard buildings cover may not cover accidental damage caused by home improvement work unless accidental damage cover is included.

• Flood risk and previous flooding: Flood cover depends on the policy wording, the property history, and what was declared when the policy was bought or renewed.

• Pest damage: Damage caused by rats, mice, vermin, or insects is often excluded, especially where the policy treats it as infestation rather than sudden damage.

• High-value items: Contents cover often has a single-item limit, so jewellery, watches, art, bikes, or technology above that limit may need to be listed separately.

• Faulty workmanship: Damage caused by work that should have been carried out by a qualified tradesperson may be excluded under a faulty-workmanship clause.

The point isn't just to find the exclusion, but to see if it actually matches what caused the damage. If that’s not the case, your insurer may need to reconsider their position.

Wear and Tear vs. Sudden Damage

Wear and tear is one of the most common home insurance exclusions, and it's also one of the most overused phrases in refusal letters. In plain English, it means damage caused by age, ordinary use, or gradual deterioration rather than by a sudden event.

A roof leak is a good example. If an insurer says bad weather merely exposed an old maintenance problem, they may rely on wear and tear or poor maintenance in the general exclusions. But if the damage can be traced to a specific storm event, the policy section for storm damage should reflect this accordingly.

What matters here is cause. Where a claim cannot be traced to one sudden event, insurers often argue gradual deterioration and leave it to the policyholder (i.e. you) to disprove it. In these cases, you may need to hire an independent surveyor or engineer to confirm whether the damage was consistent with long-term wear, a sudden insured event, or a mixture of both.

As for sudden damage, in home insurance books, it’s defined as a specific event that causes damage at a point in time, such as an escape of water from a burst pipe or damage caused by a storm.

So, despite both damage types being distinctly different, you shouldn’t rely on this alone and instead be extra careful when reviewing your insurer’s refusal – regardless of their objection, it shouldn’t simply say "wear and tear" and leave it at that. Instead, a proper decision should explain which part of the policy wording the insurer relies on, what evidence they say supports that exclusion, and why they say the exclusion applies to the facts of the claim.

Property Occupancy and Business Use Restrictions

Home policies are generally priced on the basis of how the property is being used and occupied. After all, a home that is lived in every day presents a different risk from one left empty for a long period, used for business stock, or let to short-term guests.

The relevant wording usually sits in the general conditions, the general exclusions, the buildings and contents sections, and the policy schedule. The policy schedule may also record any agreed business use, lodgers, letting arrangements, or special occupancy terms.

Let’s take a typical unoccupancy clause as an example, which states that if the property is empty beyond a certain day limit, cover may either be restricted or removed completely.

For the insurer to base their claim on unoccupancy, merely stating that the home was empty is not enough to make a strong case. They would also need to show that the clause exists, that the property met the policy definition of unoccupied, and that the consecutive-day limit or specific requirement was not met.

For winter escape of water claims, that may instead include a requirement to keep heating at a stated temperature or drain the water system while the property is empty.

Below, we’ve rounded up the typical issues that insurers tend to reference when citing property occupancy and business use clauses as a reason for their rejection:

• Unoccupied property: A property left empty for longer than the consecutive-day limit in the policy wording may have reduced cover, especially for escape of water or theft.

• Heating and draining clauses: Some policies require heating to be left on at a stated temperature, or the water system drained, while the property is empty.

• Business use: Running a business from home, storing stock, receiving customers, or using rooms for commercial purposes may need to be officially declared.

• Short-term rentals: Letting the property or part of it through short-term rental platforms may fall outside ordinary owner-occupied cover.

• Escape of water: Insurers often look closely at occupancy and heating conditions in cases where pipes have frozen, split, or leaked while nobody is living at the property.

Additionally, some restrictions may also pose significant limitations. What’s worth noting here is that if a term significantly limits a main benefit of the policy and the person selling you the policy did not announce that term clearly to you, the insurer may have difficulty relying on it to make their case.

What Typically Voids Home Insurance?

The most common reason often stems from the point of sale.

Insurers would often cite a misleading answer you may have provided either at purchase or renewal, which gives them grounds to ignore your policy entirely. However, for this to happen, they must show the misstatement was big enough for them to insure you on your current terms and price.

That matters for things like business use, short-term rentals, occupancy, previous losses, or flood history. The insurer will usually look at the statement of facts to see what was declared, the policy schedule to see what was agreed upon, and the underwriting position to explain what they say they would have done with the correct information.

However, provided you take reasonable care not to share inaccurate information when you buy or renew your policy, then your insurer cannot cancel your policy or refuse a claim as per the Consumer Insurance (Disclosure and Representations) Act 2012.

Valuables, Under-Insurance, and Accidental Damage

Not everything in a home is covered up to its full replacement value. Contents policies commonly use single-item limits, total contents sums insured, and optional add-ons to define how far the cover goes.

You will usually find these in the contents section of the policy wording and in the policy schedule. The policy schedule is especially important because it records the sums insured, the excess, named valuables, and any optional accidental damage cover.

Common issues include:

• Single-item limit: A policy may cover contents generally but cap the amount payable for one item unless it was specified separately.

• Unspecified valuables: Jewellery, watches, art, bikes, cameras, musical instruments, and high-value electronics may need to be listed if they exceed the single-item limit.

• Under-insurance: If the total sum insured is too low, the insurer may reduce the claim using a rateable proportion clause.

• Accidental damage: Standard buildings or contents cover may not include accidental damage unless the extension appears in the policy schedule.

• DIY damage: Drilling through a pipe or cable while hanging something is the kind of situation that may need accidental damage cover.

• Faulty workmanship: Damage linked to work that should have been carried out by a qualified tradesperson may engage a faulty-workmanship exclusion.

Under-insurance is one place where these limits come into play. Where the sum insured is understated, most policies let the insurer pay only a rateable proportion. So, if contents worth £40,000 are insured for £20,000, they are entitled to pay for only half of any contents claim.

Accidental damage needs separate care. A policy may cover an escape of water caused by a pipe bursting, but not cover the cost of repairing the defective pipe itself. By contrast, if accidental damage cover is in place, drilling through a pipe while hanging something may be treated differently.

Gathering the Evidence to Support Your Claim

A home insurance exclusion only helps the insurer if it actually fits the facts. If there is genuine doubt about what a term in the small print means, the ambiguity is always read in your favour. Simply put, the term should be interpreted in the way most favourable to you, even if that is not the most obvious reading.

With that said, here are the exact steps to making your case:

1. Read the refusal letter and note the wording the insurer relies on, such as wear and tear, gradual deterioration, unoccupancy, poor maintenance, business use, pest damage, or faulty workmanship.

2. Check the section you are claiming under, the general exclusions, the general conditions, and the policy schedule.

3. Ask whether the exclusion describes what actually caused the loss. If the insurer says a storm claim was wear and tear, you’ll need to determine the cause. Here, an independent surveyor's report, engineer's report, maintenance records, invoices, photographs, and repair notes can help.

4. If the insurer relies on a significant limitation, look at the policy summary and sales documents to see whether that limitation was drawn to your attention when you bought or renewed the policy.

5. If the insurer maintains a refusal without evidence that the exclusion applies, you can ask them to reconsider and explain their reasoning against the policy wording and the facts.

How SmarterClaims Can Help

A refusal letter citing an exclusion is merely a position and not a ruling. The practical question is whether the exclusion applies to the facts, whether the insurer has shown that it applies, and whether the policy wording supports the decision.

SmarterClaims can review the insurer's refusal letter and your policy documents, identify arguments relevant to the exclusion being used, and help you structure a rebuttal. That can include wear and tear, unoccupancy, under-insurance, accidental damage, business use, and other home insurance exclusions.

It can also draft a letter that you can then review, sign, and send yourself, with relevant laws, rules, and Financial Ombudsman Service points included where they apply.

About SmarterClaims

SmarterClaims is built on the 40-year playbook of Steve Smart, former UK General Counsel at AIG and current Chairman of Lancashire Insurance UK, with a background as a solicitor and Lloyd's broker.

More than £25M has been recovered in refused claims using this playbook. That figure does not promise any outcome in an individual claim.

Final Thoughts

Home insurance exclusions don't automatically apply just because an insurer names one in a refusal letter. The key question is whether the exclusion actually fits the facts of the claim.

Wear and tear, poor maintenance, unoccupancy, business use, under-insurance, and accidental damage limits all depend on the policy wording and the evidence. If the insurer relies on an exclusion, they should be able to explain the wording, the facts, and the evidence that connects the two.

Your strongest starting point here is a simple one: identify the exclusion, find it in the policy documents, and test whether it bites. And if you don’t know where to start, simply use SmarterClaims to craft a rebuttal that will be sure to get your insurer’s attention.

Frequently Asked Questions

What is the most common damage that home insurance does not cover?

Why are home insurance claims typically refused?

Can an insurer refuse a claim for pest damage?