Which of the following is NOT automatically covered by dwelling insurance?

Dwelling insurance, often referred to as a homeowner's policy or a dwelling policy, typically covers specific types of perils that can cause damage to the insured structure and its contents. The correct answer identifies theft as a peril that is not automatically included in dwelling insurance coverage.

Theft is generally considered a specific risk that often requires additional coverage or endorsements to be included in a dwelling policy. While other perils such as fire, wind, and certain types of water damage may be included as standard coverage in a dwelling insurance policy, theft requires separate considerations. Homeowners often need to add endorsements to their policy or ensure coverage through a separate renters' or homeowners' policy to protect their belongings against theft.

Understanding this distinction is important for anyone studying insurance because it highlights the necessity of evaluating and customizing an insurance policy based on personal needs and risks rather than assuming that all potential losses are automatically covered.