Understanding What Exclusions Are

What Are Exclusions?
I’m sure you know, there are some things insurance companies won’t cover automatically. Some exclusions you can buy coverage specifically to cover. Other exclusions are a risk an insurance company doesn’t want to take on! You need to read your policy wording that defines the specific policy you purchased. If you are unsure, call your agent to discuss. It seems like a lot to read, but it can save you a lot of headache if you know in advance what the exclusions are.
Here Are a Few Exclusions:
  • Anything that’s considered a maintenance issue (i.e. tires wearing out, gutters clogged with leaves, or a roof needing repair due to age)
  • Fraud, or any intentional criminal act
  • Any loss caused by war (declared or undeclared)
  • Any use of the insured object (i.e. a house, a car, etc.) that is not disclosed to the insuring company (i.e. pizza delivery, car repair shop in your garage, etc.)
  • If your house is vacant for a specified period of time (most companies its 30 days)
  • Damage by contamination of radioactive material
  • Damage caused by animals that you own, or vermin such as rodents
  • Property damage to property that is rented to others
  • A vehicle used for racing or speed tests
There are many more, but I hope this encourages you to read your policy wording. If you would like to learn more on how to thoroughly read your policies, check out How to Read Any Insurance Policy: 12 Rules.