Dealing with property damage is stressful enough. Whether it's mold creeping through your walls, water damage from a busted pipe, or the aftermath of a fire, homeowners and property owners turn to insurance to help them recover. But then comes the surprise: the insurance company denies your claim, citing something called the "Excluded Perils" clause.
At Ayala Law, we've worked with clients across Florida who thought they were covered—only to find out too late that the fine print in their policy left them with little or nothing. In this blog post, we break down what Excluded Perils are, why they matter in mold, water damage, and fire claims, and how you can protect yourself.
What Does 'Excluded Perils' Mean in a Property Insurance Policy?
An Excluded Perils clause in your property insurance policy lists specific events or conditions that are not covered. If damage is caused by one of these "excluded" perils, the insurance company can deny your claim—even if the damage is real and significant.
This clause is often buried in the middle of dense policy language. But it's one of the most important parts of your insurance contract.
Common Perils That Are Often Excluded From Coverage
Here are some common causes of damage that may be excluded from your standard policy—unless you've purchased additional coverage:
Mold:
- Often excluded or capped at low limits (like $10,000 or less)
- Insurance companies may argue mold was caused by "long-term neglect" or a "maintenance issue"
Water Damage:
- Gradual leaks are often not covered
- Damage from flooding is typically excluded unless you have a separate flood insurance policy
- Sewer backups may also be excluded unless you have specific coverage
Fire:
- Most fire damage is covered—but claims can be denied if the insurer argues arson, neglect, or an excluded cause led to the fire
- If fire damage is the result of faulty wiring not disclosed to the insurer, they may reject the claim
If your damage was caused by a combination of events—some covered, some not—this creates a coverage gray area, which is where many disputes arise.
How Insurance Companies Use 'Excluded Perils' to Deny Claims
When a claim is filed, insurance adjusters may look for any justification to deny or limit the payout. The Excluded Perils clause is often the go-to tool.
Examples of Claim Denials We've Seen:
- A homeowner suffers water damage from a broken A/C unit, but the insurer says the damage was due to "maintenance failure," an excluded peril.
- A property owner discovers black mold in a rental unit. The insurer blames "ongoing neglect" rather than a covered sudden leak.
- A business experiences a fire caused by outdated wiring. The insurance company claims the damage isn't covered because of an undisclosed condition.
These cases often require a legal fight to push back against narrow interpretations of what's covered and what's excluded.
Can You Still Get Paid If the Damage Falls Under an Excluded Peril?
Yes—but it depends. Here's where things get nuanced.
When You Might Still Have a Claim:
- The "excluded" peril contributed to the damage, but so did a covered peril
- The insurer misclassified the cause of damage
- You can show the damage was sudden and accidental, not long-term
- Your policy includes an endorsement (add-on) that covers what would otherwise be excluded
This is where working with an experienced insurance litigation attorney can make the difference between getting nothing—and getting compensated.
What to Do if Your Property Damage Claim Was Denied
If your mold, water, or fire claim was denied, here are steps you should take immediately:
- Request the Denial in Writing: Review the exact reason for denial
- Get a Second Opinion: Bring in an independent contractor or expert to assess the cause of damage
- Gather Documentation: Photos, videos, repair records, and inspection reports can help your case
- Do Not Accept the Denial as Final: You have a right to dispute the decision
- Talk to An Attorney: Especially if the amount at stake is significant or the insurer is misrepresenting your coverage
At Ayala Law, we represent policyholders in insurance litigation across Florida, and we understand how insurance companies think. We can assess whether the denial was valid, or if your case can be fought and won.
Can I Sue My Insurance Company for Denying My Claim?
Yes. If your insurer wrongfully denied a valid claim or acted in bad faith, you may have grounds for a lawsuit against the insurance company.
In Florida, insurers are legally required to:
- Properly investigate claims
- Act in good faith
- Not misrepresent policy language
If they fail to do this, they can be held financially responsible, sometimes beyond the original policy limits.
Final Thoughts: Don't Let the Fine Print Cost You
Insurance policies are complicated and insurance companies count on that. The Excluded Perils clause can significantly impact your claim, but it's not always the last word. At Ayala Law, we help Florida property owners understand their rights, fight unfair denials, and get the compensation they deserve. Whether you're reviewing a policy or responding to a denial, our legal team is ready to assist.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
