What is typically excluded from property insurance coverage?

Flood damage is typically excluded from standard property insurance coverage because it is considered a separate risk that requires specialized coverage, such as flood insurance. Most standard homeowners' insurance policies do not include protection against flood damage due to the unpredictable nature and potential severity of flooding events. Because of this, property owners often need to obtain additional flood insurance through the National Flood Insurance Program (NFIP) or private insurers to ensure they are covered for this specific peril.

This distinction is crucial for policyholders, as relying solely on a standard property policy without addressing flood exposure can lead to significant financial losses in the event of a flood. Understanding the limitations of standard coverage helps individuals make informed decisions about their insurance needs and potential add-on policies.