What types of perils are generally excluded from coverage under Section I of a Homeowners Policy?

Homeowners policies typically exclude certain natural disasters from coverage, and earthquakes and floods are the most notable examples. These types of perils are generally considered to be high-risk events that require separate insurance policies specifically tailored to address their potential financial impact.

For instance, most standard homeowners policies will not cover damage resulting from an earthquake, which can cause significant structural damage and financial loss. Similarly, flooding—especially in areas prone to heavy rain or rising water—poses substantial risks that are not typically included in a standard homeowners policy. Homeowners in flood-prone areas usually need to purchase a separate flood insurance policy to be protected.

This coverage exclusion is important for policyholders to understand, as it underscores the need for additional insurance products to cover these specific risks that are outside the scope of standard homeowners coverage.