Which of the following is excluded from standard property insurance policies?

The exclusion of flood-related property damage from standard property insurance policies is accurate because most standard property insurance policies, such as those underwritten by the standard Homeowners or Commercial Property Insurance, do not cover flooding. Instead, flood coverage is typically provided through separate flood insurance policies offered by the National Flood Insurance Program (NFIP) or private insurers. This exclusion exists because floods are often extensive, unpredictable, and can result in extensive losses, leading insurers to manage risk by requiring distinct policies.

In contrast, damage from natural disasters like earthquakes or hurricanes may also be excluded, but it varies by policy and often can be added via endorsements in some instances. Local theft incidents can generally be covered under standard property policies, depending on the terms of the coverage. Fire damage, even if caused by faulty wiring, is typically covered under standard policies, emphasizing the specific nature of the exclusion regarding floods.