What are Excluded Risks or Exclusions?

Answer:
Insurance policies often list specific types

of property, dangers (perils), persons, or situations that they will not cover under the policy. These are excluded risks, or exclusions.

For example, some types of property might be excluded or limited under a homeowners insurance policy such as expensive art collections and jewelry. Perils that are often excluded include floods, earthquakes, and landslides. Insurance policies may also exclude damage due to certain situations including war or nuclear accidents.

Just because something is specifically excluded doesn’t mean that you can’t necessarily get added coverage. For example, you can purchase additional coverage for your collections or jewelry.

Some insurance policies such as auto insurance policies specifically exclude coverage to specific individuals. For example, if your spouse has a DUI, you may not be able to get insurance for yourself unless your spouse is specifically excluded.

No matter what type of insurance policy you have, you will likely find a section detailing the excluded risks. Make sure to read this section and understand what each exclusion means. In many cases, you can purchase endorsements or separate policies (such as flood or earthquake insurance) to minimize your potential losses.


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