You're probably not covered for the damage that a squirrel caused to your home, because standard homeowners insurance policies do not cover damage caused by rodents, birds, insects and vermin. Rodents are described as gnawing or nibbling animals, including mice, rats, squirrels, beavers, and in some cases, porcupines.

However, your policy does cover you for losses that result from excluded events (as long as the loss is not itself excluded from coverage). If, for example, the squirrel gnawed through some wires in your home, you're not covered for damage to the wires, but you are covered for any damage resulting from a subsequent electrical fire.