Standard insurance policies across property, auto, and commercial sectors universally exclude certain occurrences to manage moral hazard and systemic risk. Common exclusions include intentional or fraudulent damage caused by the policyholder, normal wear and tear, gradual deterioration, rust, corrosion, mechanical or electrical breakdown without a specific rider, damage caused by acts of war, nuclear contamination, and losses stemming from illegal activities. Additionally, specific natural hazards like floods or earthquakes often require specialized endorsements depending on the region.
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