Homeowner insurance typically does not cover damage caused by dry rot. Dry rot is considered a maintenance issue rather than a sudden and accidental event, which is what most homeowner insurance policies are designed to cover. Insurance policies generally exclude coverage for damage resulting from gradual deterioration, including dry rot. It's important for homeowners to regularly inspect and maintain their property to prevent dry rot and other similar issues. However, it's always best to review the specific details of your insurance policy and consult with your insurance provider for accurate information regarding coverage for dry rot.