Exclusions

Glossary

In every home insurance policy, you’ll find a list of items that the insurance provider has excluded from coverage. These exclusions are provisions in your policy that the insurance company will not pay for. They are there to help clearly define what your policy does and does not cover. In most cases, insurance providers exclude certain perils because their risk is simply too great. An example of an exclusion in most house insurance policies is a flood. Generally, floods are excluded from all policies, but especially those for homes located in high-risk areas. The opposite of an exclusion would probably be considered an endorsement, which specifies items and perils that a home insurance policy will cover. Home owners can add endorsements into their policies, however, they often come at an extra cost.

Common Exclusions

Generally speaking, the house insurance industry has a fairly standard set of exclusions that apply to most policy owners. Although, areas that are at a risk for specific perils may have more exclusions than others. Here’s a look at some of the most common exclusions found in most homeowner’s insurance policies. Remember, this is not a complete list of every exclusion in every insurance plan. Read the terms of your house insurance policy or contact your insurance agent for specific information regarding your own policy:

• Wear and Tear - One exclusion you’ll find on nearly every home insurance policy is wear and tear damage. Inevitably, every home will incur some normal damage over time and anything deemed to be wear and tear by the insurer will not be covered. This also includes damage caused by pets, such as dogs or cats that tear up the carpet. Accidental damage is sometimes grouped into this category as well. Specific coverage varies by provider, but many companies will cover accidents you cause in your home.
• Environmental Factors - Environmental factors usually include some of the major natural disasters, such as floods, tornadoes, and hurricanes. More expensive policies are extra endorsements may allow you to get coverage for some environmental factors. If you live in an area at high risk for any of these perils, you may find it very difficult to get any type of home insurance coverage of them though.
• External Factors - Generally, external factors include damage caused by war or pollution. This is one category of exclusions that tends to vary quite a bit among insurance providers. Some will cover certain external factors, and due to the rise in terrorist attacks in recent years, many insurers are now providing coverage for them.
• Home Vacancy - Should you leave your property vacant for a prolonged period, your insurer may declare your policy null and void. Leaving your home without a caretaker is considered negligent and insurers will not pay out any policy benefits during this time. The period in which insurance providers consider your home vacant can vary, usually ranging from 30 to 60 days.