What type of damage is typically excluded from homeowners insurance policies?

Homeowners insurance policies generally provide coverage for various types of damage, including fire and theft, but they often exclude certain perils that are considered too risky or difficult to insure. Flood damage is typically excluded because it poses a unique set of risks that standard homeowners insurance is not designed to cover. As a result, homeowners in flood-prone areas are usually advised to purchase separate flood insurance through the National Flood Insurance Program (NFIP) or private insurers. Floods can cause extensive and devastating damage that can affect entire regions, thus making it impractical for standard homeowners insurance to cover them.

Fire damage, theft damage, and damage from pests generally fall within the coverage provided by homeowners policies. While certain limitations and conditions may apply, these risks are acknowledged as standard perils that insurers expect to cover, distinguishing them from the more significant risks associated with flooding.