Which of the following is a common exclusion found in homeowners insurance policies?

Homeowners insurance policies typically include specific exclusions to define the boundaries of coverage. Flood damage is commonly excluded because standard homeowners insurance is not designed to cover water damage from flooding, which can result from heavy rain, storm surges, or other natural disasters. Instead, homeowners needing protection against flood damage often must purchase separate flood insurance through programs like the National Flood Insurance Program (NFIP).

In contrast, damage from electrical malfunctions, theft of personal property, and fire damage generally fall within the scope of coverage provided by most homeowners insurance policies, as these are considered common risks that homeowners face. Therefore, the correct identification of flood damage as an exclusion highlights the unique nature of coverage limitations in homeowners insurance that often require additional policies for comprehensive protection.