What is a common natural disaster specifically excluded from dwelling policies?

Floods are commonly excluded from dwelling policies because these policies typically cover standard perils related to property damage, such as fire, theft, and some natural disasters like windstorms and hail. However, flood damage is considered a significant risk that requires specialized coverage due to the different nature and impact of water damage. Many insurance companies offer separate flood insurance policies to address this risk, which is part of the National Flood Insurance Program (NFIP).

In contrast, perils like windstorms and hail are usually covered under standard dwelling policies, reinforcing that these policies generally protect against common property risks. Earthquakes, while also often excluded from standard policies, may be categorized widely under other types of coverages but typically necessitate a separate earthquake policy. Hence, the specific exclusion of floods highlights the need for tailored insurance solutions to adequately cover different types of natural disasters.