What does common property insurance typically exclude?

Common property insurance typically excludes wear and tear and mechanical breakdown because these types of damage are considered a result of the normal use and aging of the property, rather than sudden or accidental events. Insurance is designed to cover unexpected incidents and losses that can have severe financial impacts on the property owner. Since wear and tear is anticipated and manageable through regular maintenance, insurers view it as an ongoing operational cost that should not be covered under a policy. This distinction helps keep insurance premiums manageable by not covering predictable expenses, thereby ensuring that the insurance system remains sustainable and focused on unforeseen occurrences.

Fire and smoke damage, theft, and natural disasters like hurricanes are generally covered by property insurance policies, as these are events that homeowners cannot easily prevent and which can lead to significant financial loss.