What is typically excluded from standard property insurance policies?

Standard property insurance policies often exclude damage caused by natural disasters, such as earthquakes and floods. These types of risks are considered to be of a higher frequency and severity, which is why insurers typically do not include them in standard coverage forms. Instead, they offer specialized policies or endorsements that can be purchased separately to cover these specific perils.

Understanding this exclusion is crucial for policyholders, as it prompts them to consider additional coverage options to protect against these significant risks. Many individuals are surprised to learn that their standard homeowner's or property insurance policy does not cover these events, highlighting the importance of reviewing policy details and seeking out additional protection if they live in areas prone to such natural disasters.