Which is generally excluded from coverage in most insurance policies?

In most insurance policies, earthquake coverage is often excluded or offered as a separate policy or endorsement. This is primarily due to the high risk and potentially catastrophic financial impact associated with earthquakes, which can lead to significant property damage. Insurance providers frequently view earthquake risk as a higher exposure compared to other risks, leading them to exclude it from standard policies to manage their risk more effectively.

Vandalism, fire damage, and theft are typically included in standard homeowners and property insurance policies, subject to certain conditions and deductibles. While these perils can still be significant risks, insurers have generally found ways to underwrite them within the context of broader coverage plans. As a result, earthquake coverage stands out as a common exclusion, underscoring its unique risk profile in the insurance landscape.