What is typically excluded from coverage in dwelling policies?

Flood damage is typically excluded from coverage in dwelling policies because these policies are designed primarily to protect against specific perils such as fire, vandalism, and certain types of theft. Dwelling policies focus on risks that can be typically managed under standard insurance provisions. However, flood damage is often categorized as a distinct peril that requires specialized policies, such as those provided through the National Flood Insurance Program (NFIP) or separate flood insurance policies offered by private insurers.

This differentiation makes it essential for policyholders, especially those in flood-prone areas, to obtain additional coverage if they want to protect against this kind of damage. Understanding this helps individuals recognize the limits of their dwelling policies and the need for extended coverage options.