Which type of loss is typically covered by standard homeowners insurance policies?

The correct response, emphasizing theft, aligns with the protections offered under standard homeowners insurance policies. These policies are designed to cover personal property within the home against certain risks, including theft. This means that if personal belongings are stolen from the residence, the policyholder can file a claim to recover some of the financial loss incurred.

Homeowners insurance typically covers various types of personal property losses, along with other hazards like fire or vandalism, but theft specifically falls within the common perils listed under these policies.

On the other hand, business losses are not covered under standard homeowners policies, as these are typically designed for personal, not commercial, activities. Earthquakes, while damaging, usually require a separate endorsement or policy due to their specific nature and higher risk factors. Likewise, flooding is often excluded from standard homeowners coverage and requires a specialized flood insurance policy.