Every insurance policy has five parts to it - declarations, insuring agreements, definitions, conditions, exclusions, and many times, a sixth part called endorsements. But one of the most important parts is the exclusions area. An exclusion is any loss or damage that isn't covered by your insurance policy (in other words, items that you cannot file a claim for).
Insurance exclusions are policy provisions that waive coverage of certain types of risks or events. They are an important way that an insurer can narrow the range of coverage for risks they are unwilling to cover. Because of that, a policy is largely defined by its various exclusions.
While the average insurance customer may not like the idea of exclusions in a policy, the reality is that an insurer is a business. The risk of having to cover excluded events would prevent many insurers from being in the market and, as a result, other insurance coverages would suffer.
Exclusions within a policy vary based on several factors and are up to the insurance provider's decision. While some exclusions in commercial property, homeowners, personal auto and general liability insurance policies will be the same, other policies will be unique to that specific type of policy. Generally speaking, there are exclusion categories that are broadly applied to all forms of insurance. They include...
Catastrophic - risks that are so uninsurable because they are so taxing, such as war, government action, acts of God (floods, tornados, earthquakes, etc.)
Intentional Actions - this occurs if an insured intentionally causes the damage
Covered Elsewhere - this comes up when coverage is already provided in another policy
Illegal Actions - most every policy will be voided if the insured is attempting to recoup losses resulting from lawless behavior or criminal actions
Maintenance Issues - most policies will not cover the normal wear and tear of property
Easy To Control - these risks are excluded because they can easily be mitigated or significantly reduced by the insured taking proper precautions or actions. Exclusions can be critical when you are considering insurance coverage. What isn't covered can be as important as what is covered. That is why you should have your J. P. Perry Insurance agent help you through all of your insurance decisions.
Exclusions can be critical when you are considering insurance coverage. What isn't covered can be as important as what is covered. That is why you should have your J. P. Perry Insurance agent help you through all of your insurance decisions.