Which peril is generally not included in basic dwelling policies?

Flood is generally not included in basic dwelling policies because most homeowners and dwelling forms limit coverage to specific perils, with flooding typically being excluded due to its nature and potential high cost. Basic dwelling policies usually cover common risks such as explosion, smoke, and vandalism, which are more controllable and predictable.

Flood insurance is a separate type of coverage offered usually through the National Flood Insurance Program (NFIP) or as an add-on to homeowners or commercial insurance policies. Since floods can be catastrophic and their occurrence is often determined by geographic and environmental factors, insurers choose to exclude them from standard coverage to better manage risk.

This is important for policyholders to understand, as they may need to seek additional coverage if they live in a flood-prone area to ensure they are adequately protected.