Los Angeles Claims Adjuster Property and Causality Practice Exam

Which of the following perils is typically not covered under property insurance policies?

1. Earthquake

2. Theft

3. Vandalism

4. Fire

The correct answer is: Earthquake

In most property insurance policies, earthquakes are typically excluded from coverage. This is largely because earthquake damage can lead to extensive and costly repairs that insurance companies may find difficult to underwrite effectively. As a result, separate earthquake insurance policies are often available for purchase, allowing property owners to specifically protect against this type of peril. Other perils listed, such as theft, vandalism, and fire, are generally covered under standard property insurance policies. Theft and vandalism are common risks that property policies aim to protect against, recognizing their prevalence in residential and commercial properties. Fire is also a fundamental threat, and most property insurance is designed explicitly to cover losses resulting from fire damage. Thus, earthquake coverage requires a distinct policy offering, making it the correct answer when identifying a peril that is typically not covered under standard property insurance policies.