What disasters are not covered under standard insurance policies?
Homeowners insurance policies vary, and insurance providers may adjust premiums or limit coverage based on property type and location. Mortgage lenders require homeowners insurance and may mandate additional coverage for specific disaster risks.
Excluded from most or all policies
Standard homeowners insurance typically does not cover:
- Flooding (except for flood damage inside a home caused by broken or burst pipes);
- Earthquakes;
- Landslides, mudslides, and mudflows;
- Sinkholes;
- War; and
- Nuclear accidents.
Homeowners in high-risk areas for these events may need separate policies. Earthquake insurance, for example, is available in states like California and Alaska, which experience frequent seismic activity.
Flooding is a more widespread risk, particularly in low-lying areas. The National Flood Insurance Program (NFIP)—managed by the Federal Emergency Management Agency (FEMA)—offers flood coverage, including protection against damage from mudslides and mudflows. NFIP categorizes flood zones to help assess risk levels.
Excluded from some policies
Homeowners insurance may limit or exclude coverage for certain disasters depending on location and other risk factors. Additional policies can be purchased for uncovered risks.
For example, homeowners in Florida and coastal Texas face higher hurricane risks, including wind damage and flooding from storm surges. While some insurance policies cover hurricane damage, premiums tend to be significantly higher in these regions.
Wildfire damage and insurance challenges
Wildfires are becoming an increasing concern for both property owners and insurers, with climate change contributing to heightened risks.
California has experienced some of the most destructive wildfires in U.S. history. Among the 20 costliest wildfires, 17 have occurred in California. Notable examples include:
- Camp Fire (2018) – 85 deaths, $16 billion in damage (Butte County).
- Tubbs Fire (2017) – 22 deaths, up to $11 billion in damage (Northern California).
- Woolsey Fire (2018) – 3 deaths, $6 billion in damage (Los Angeles & Ventura Counties).
- Tunnel Fire (1991) – At least 25 deaths, up to $5 billion in damage (Oakland).
- Los Angeles County Fires (2025) – Still ongoing, with potential record-breaking costs.
Homeowners in wildfire-prone areas may struggle to find coverage. Some policies cover house fires but exclude wildfires, requiring a separate policy or an additional rider with a separate deductible.
FAIR plans
In high-risk areas where private insurers refuse coverage, Fair Access to Insurance Requirements (FAIR) plans provide an alternative. Available in over 30 states and Washington, D.C., these state-backed policies offer limited coverage at higher premiums and deductibles.
What disasters are covered under standard homeowners insurance?
Homeowners insurance usually covers damage caused by:
- Fire (excluding some wildfires);
- Explosions;
- Lightning;
- Hail;
- Windstorms (including tornadoes and some hurricane-related wind damage);
- Extreme cold (burst pipes, roof damage from snow/ice buildup); and
- Volcanic eruptions (including ash, lava, and shock waves).
Even when policies include coverage, insurance providers may attempt to deny claims. For example, a provider might argue that a wildfire was an excluded event despite general fire coverage. Homeowners can submit a Request for Information about an Insurance Denial to clarify claim rejections.
What is natural disaster insurance?
Natural disaster insurance or catastrophe insurance covers natural and human-caused disasters that are not part of a standard home insurance policy. Some disasters are never part of standard homeowners coverage. Other disasters may be subject to exclusions based on risk factors like geographic location. Examples of natural disaster insurance include the following:
- Fire insurance – Required in high wildfire-risk areas;
- Flood insurance – Available through the NFIP;
- Earthquake insurance – Offered in high-risk states like California.
This coverage can cause your insurance costs to go up significantly. The insurance industry takes a different approach to natural disaster insurance, as compared to homeowners insurance. Disasters tend to affect many properties all at once, leading to a large influx of claims, followed by a large number of payouts. Insurance companies may charge higher premiums and require higher deductibles as a result.
Wildfire Insurance in California
Wildfire coverage varies by policy. In lower-risk areas, standard homeowners insurance may be sufficient. High-risk homeowners may need additional coverage through private insurers or a FAIR plan.
In response to the 2025 Los Angeles wildfires, California has implemented new protections for policyholders, including:
- A moratorium on policy cancellations and non-renewals; and
- Regulatory reforms to improve risk assessment standards for insurers.
Is natural disaster insurance worth it?
Insurance can seem unnecessary until disaster strikes. Natural disaster insurance could be quite inexpensive in areas with low disaster risk. In high-risk locations, additional protection can be costly but crucial.
A Home Inventory Worksheet can help you estimate your personal property value and determine the appropriate coverage. Consulting a contractor can provide insight into rebuilding costs. However, financial losses are only part of the equation.
Beyond property damage, disaster victims often face unexpected expenses like temporary housing, food, and emergency supplies. Additional Living Expenses (ALE) coverage, included in many homeowners, renters, and disaster policies, can help with these costs during an evacuation or rebuilding period.
What can I do if disaster strikes?
Some disasters, such as hurricanes, come with advance warnings, while others, like earthquakes, wildfires, and tornadoes, can happen with little notice. If you have time to prepare, consider the following:
- Before a hurricane or storm – Secure outdoor furniture, cover windows, and use sandbags to prevent water intrusion.
- Before wildfire season – Create defensible space around your home. CAL FIRE recommends clearing vegetation within five, thirty, and one hundred feet of your property to reduce fire risk.
Once you are aware of a disaster, act quickly:
- Gather essentials, evacuate with family and pets, and move to a safe location.
- Contact emergency services if needed..
- Monitor news updates for real-time information.
After the disaster, take the following steps:
- Seek emergency medical care if necessary.
- Document property damage with photos.
- Arrange temporary housing if needed.
- Contact your insurance provider to start the claims process.
- Reach out to FEMA and other disaster relief programs.
- Track additional living expenses for potential reimbursement.
Need help with insurance or legal issues?
If you have questions about insurance claims, coverage, or disaster preparedness, Rocket Lawyer is here to help. Download the Rocket Lawyer mobile app or connect with a Rocket Legal Pro for affordable legal guidance.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.
