What type of damage is generally excluded from standard policies that might require a stand-alone policy?

Damage resulting from earthquakes is typically excluded from standard property insurance policies. This exclusion exists because earthquakes can cause significant and widespread destruction, making the potential cost for insurers exceedingly high. As a result, many insurance companies do not include earthquake coverage in their standard policies to manage their risk exposure effectively. Home and business owners who want protection from earthquake damage typically need to obtain a separate, stand-alone earthquake insurance policy.

In comparison, fire damage from cooking accidents may be covered under standard homeowner's or renter's policies, as is water damage from plumbing issues, which usually falls under standard coverage too. Theft of personal items is generally covered, provided the items are listed and within the policy limits. Thus, earthquake damage stands out as a significant risk often requiring specialized insurance.