What Home Insurance Actually Covers (And What It Doesn’t)

If you’ve ever flipped through your home insurance policy and felt like it was written in a different language, you’re not alone. Most people assume home insurance will cover “whatever happens.” But the truth is, some of the biggest risks homeowners face aren’t covered by default —and in North Carolina, that can be a big deal.

 

This post isn’t here to scare you or pitch anything. It’s just a straight look at what your home insurance usually covers, where the gaps are, and why those gaps matter more than you think.

 

What Most Standard Policies Do Cover

 

At its core, your homeowners insurance policy is there to protect your home, your stuff, and your liability. Most standard policies (called HO-3 policies) cover your home and detached structures (like garages or sheds) against damage caused by things like:

 

Fire

Lightning

Wind and hail

Theft or vandalism

Falling objects (like tree limbs)

Some types of water damage (like a burst pipe)

 

You’re also covered for personal liability —so if someone trips and falls on your porch, your policy may help pay for their medical bills or legal costs. So far, so good.

 

 

Where Things Start to Fall Apart

 

Here’s where it gets tricky: a lot of the things people assume are covered… aren’t.

 

Let’s say you live in Wake Forest and a major storm rolls through in July. Your roof gets hammered by hail, and water leaks into your attic. You call your carrier, only to find out your wind/hail deductible is separate—and a lot higher than you thought.

 

Or maybe your crawl space floods after three days of nonstop rain. You file a claim, but the adjuster tells you the damage isn’t covered because flooding from outside water isn’t included in a standard policy.

 

It’s these moments—when someone’s already dealing with damage—where the fine print hits hardest.

 

 

The Gaps That Matter in NC

 

In North Carolina, especially during hurricane season, there are a few big exclusions or limitations you should know about:

 

Flood damage isn’t covered. If water comes from outside—from rising rivers, storm surge, or heavy rain—it’s not part of your home insurance. You need separate flood insurance for that.

 

Earth movement isn’t covered. That includes earthquakes, sinkholes, and landslides. Unlikely? Maybe. But if your house is near steep terrain or old farmland, it’s worth asking about.

 

Wind and hail deductibles are often separate. In coastal or high-risk counties, these deductibles can be a percentage of your dwelling coverage—often much higher than your standard deductible.

 

Sewer backup and sump pump overflow aren’t standard. You can usually add coverage for this, but it’s not included automatically.

 

Mold is almost always excluded. If it results from a covered loss and is caught early, there may be limited help. But slow leaks and moisture issues usually don’t qualify.

 

A Made-Up But Totally Realistic Story

 

Let’s say Kevin and Amanda moved into a nice brick home in Rolesville in 2021. They set up their policy online—checked the boxes, went with the cheapest option, didn’t ask questions.

 

Fast forward to July 2023. Heavy rains backed up the drainage ditch behind their yard. Their basement flooded, and everything they had stored down there—seasonal decorations, furniture, a treadmill—was ruined.

 

The adjuster came out. Told them it was a flood loss, not covered by their policy. Kevin argued that it had never flooded before. Didn’t matter. Then they found out their deductible for roof damage (which they also had) was 2% of their dwelling coverage—not the $1,000 they’d assumed.

 

By the time it was over, they were on the hook for everything. Not because they didn’t have insurance—but because they didn’t know what their policy didn’t include.

 

 

What You Can Do Instead

 

The point here isn’t to panic you—it’s to help you avoid this kind of surprise.

 

The best advice we can give? Ask questions. That’s the value of working with an actual agent. Anyone can get you a price online. But an agent helps you figure out where your risks are—and whether your policy actually addresses them.

 

If you don’t know what your wind/hail deductible is—or if you’ve never asked whether your crawlspace would be covered after a heavy rain—it’s probably time for a review.

 

We do this all the time. No pressure, no pushy sales pitch. Just good info, so you’re not blindsided when something goes wrong.

 

 

Final Word

 

Home insurance isn’t designed to cover everything. It’s there to protect you from big, sudden, and accidental events. But in North Carolina, where hurricanes, flash floods, and big weather swings are part of the deal, assuming you’re covered is risky business.

 

You don’t have to memorize your policy or read through every line. But it’s worth making sure someone has—and that they’re looking out for your house, not just selling you the cheapest policy.

 

 

Disclaimer: This article is for general informational purposes only and doesn’t replace professional advice. Every policy is different, and coverage can vary based on your insurer, location, and specific situation. If you have questions about your own insurance, talk with a licensed agent who can review your policy in detail.