What are common exclusions found in property insurance policies?

Flood damage, earthquake damage, war, and insect infestations are indeed commonly excluded from many standard property insurance policies. While it may seem counterintuitive, certain types of damage are often deemed too catastrophic or unpredictable, making them uninsurable at a standard rate. For instance, floods and earthquakes can cause extensive damage over large areas, leading insurers to either exclude them from standard policies or offer them as separate endorsements or policies.

War-related damages are also typically excluded due to the unpredictable nature and large-scale effects of such events, which can lead to significant financial losses for insurers. Insect infestations, on the other hand, are often considered a maintenance issue rather than a catastrophe, making them ineligible for coverage under most policies.

This understanding is pivotal for policyholders, emphasizing the importance of reviewing coverage options and considering additional coverage for these specific risks, particularly in areas prone to such occurrences.