Which peril is typically excluded from coverage by a dwelling policy?

In a dwelling policy, coverage for earthquake damage is typically excluded. This is because most standard dwelling policies are designed to cover risks associated with owning and maintaining a residential property, such as fire, theft, and storm damage. Earthquakes present unique risks and challenges that are not commonly addressed within the general property policies. As a result, separate earthquake insurance or endorsements may be needed to cover this specific peril, as insurers generally consider earthquake damage to be a higher risk that requires specialized coverage options.

Other perils, such as storm damage and fire, are generally included in standard dwelling policies, and provisions for theft may also be available, depending on the specific coverages selected. The exclusion of earthquake coverage is a notable aspect of risk management in the insurance industry, reflecting the need for policyholders to secure additional protection against this specific natural hazard.