Exclusion
Definition
A specific condition, event, or type of property that is not covered by an insurance policy. Exclusions are listed in the policy and define the boundaries of coverage. Common homeowners exclusions include flood, earthquake, intentional acts, normal wear and tear, and pest damage. Understanding your exclusions is as important as understanding your coverage.
When This Matters
Your homeowners policy excludes flood damage. When heavy rain causes water to enter through your foundation, the insurer denies the claim because flooding is excluded.
Related Terms
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