Answer
Most homeowner’s insurance does not cover rodent damage that is caused over a period of time. However, you will probably be covered for damage that occurs suddenly or unexpectedly. So, if squirrels break into your attic undetected, chew through electrical wiring so that a fire starts, your insurer should pay out.
However, if the squirrels have been living in your attic for several months, it’s unlikely that the insurance company will accept any claim that you may make for damage.
New properties
If you buy a new property and your surveyor doesn’t spot squirrel damage in the attic during the initial survey, your insurance company will pay out. However, if you elected not to have a survey done or you did not heed the inspector’s advice, any damage that squirrels have caused will not be covered by your homeowner’s insurance.
If a major structural defect was not spotted during the pre-purchase home inspection, such as a missing piece of flashing on the house roof that allowed squirrels to get into the roof space, your insurer most likely wouldn’t pay for any damage that’s subsequently caused. However, you may be able to claim compensation from the inspector’s professional liability insurance.