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

Intentional acts and fraud are commonly excluded in insurance policies because they present a significant risk to insurers. When a policyholder engages in intentional misconduct or deceitful behavior, it undermines the purpose of insurance, which is to provide protection against unforeseen and accidental losses. Insurers aim to maintain a fair and honest system by excluding coverage for losses that arise from intentional actions. This exclusion helps prevent moral hazard, where individuals might create circumstances to benefit unjustly from their insurance coverage.

The other options typically represent risks that insurers might cover, depending on the specific terms of the policy. Accidental damage refers to unintended incidents and is often covered, while natural disasters can be included or detailed in separate policies due to their high risk. Losses due to theft may also be covered, contingent on the policy specifics and the terms associated with the insured item's protection. By excluding intentional acts and fraud, insurance policies seek to maintain integrity and sustainability within the insurance system.