Exclusion
A specific situation, condition, or type of loss that your insurance policy does not cover. Exclusions are listed in your policy documents and are just as important to read as the coverage sections. Common exclusions include intentional damage, war, and nuclear hazards.
Real-World Example
Flood damage is a standard exclusion on most homeowners policies, which is why separate flood insurance exists.
Related Terms
Disclaimer: This glossary entry is for informational purposes only and does not constitute financial or insurance advice. Consult with a licensed insurance professional for personalized guidance. GuardianChoices may earn affiliate commissions from links on this site — see our advertiser disclosure.
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