Idaho Property and Casualty Practice Exam 2026 - Free Practice Questions and Study Guide

A standard homeowners policy typically excludes coverage for earthquakes and floods because these types of natural disasters carry a higher risk and potential for significant loss. Insurance companies often categorize them as catastrophic events that require separate endorsements or policies. This limitation encourages homeowners to consider additional specialized coverage to protect against these specific risks, as the likelihood and potential damages from such events can be extreme and outside the standard parameters of a basic homeowners policy.

Other choices, such as coverage for theft and vandalism, fire and smoke damage, and personal liability, are generally included in standard homeowners policies, reflecting the need to protect against common risks that homeowners face. By understanding the exclusions of a homeowners policy, homeowners can make informed choices about additional coverage to adequately protect their property.