The perils homeowner's insurance won't cover If your house burns down, the insurance company will pay. Ditto if a tornado blows it away. Some homeowners have been surprised to discover that their homeowner's insurance does not cover flood damage. or damage from earthquakes and landslides. Other common exclusions include damage from mold, broken pipes due to lack of routine maintenance, and sewage backups. If you live in a high-risk area for floods, your mortgage company will require you to carry flood insurance. Even if the risk is fairly small, flood insurance is a good idea, though it can cost $1,700 a year or more on a $150,000 building and $50,000 in coverage for contents. Consider what problems place your home at the greatest risk and beef up coverage by adding endorsements, say experts at thisoldhouse.com.