What Are Coverage Exclusions?

Insurance policies are very commonplace. Chances are most people you know have at least a homeowners or auto insurance policy—many have both. Beyond these, other popular offerings include life insurance, dental insurance and health insurance.

Insurance is designed to help pay for losses you experience. For example, homeowners insurance may help pay for a broken window after a storm; auto insurance may help pay for a new bumper after a fender bender.

However, it’s important to know that insurance doesn’t cover everything. In most cases, insurance policies will explicitly tell you what it will not pay for. These are called coverage exclusions.

What Are Some Examples of Coverage Exclusions?

Insurance policies can vary significantly depending on insurer, location and chosen coverages. For instance, you may be able to pay extra (e.g., add an endorsement or additional insurance) to cover a peril that may otherwise be excluded. The home or auto policy you have may differ from that of your neighbors, even if you have similar homes and cars.

For homeowners insurance, common exclusions include:

• Floods
• Earthquakes
• Acts of war

For auto insurance, common exclusions include:

• Normal wear and tear
• Damage due to racing
• Business use of personal vehicle

These aren’t the only exclusions you might see. Additionally, other types of insurance (e.g., life, health and dental) have their own exclusions to consider.

How Do I Know Which Exclusions Apply to Me?

You can find any exclusions to your insurance in the policy’s documentation. There is often a section devoted to exclusions; they may also be explained within the coverage descriptions.

Reach out to our staff today at 515-576-4321 for help understanding your policy, including what it may or may not cover. We can also help identify any coverage gaps and recommend additional insurance to better protect your interests.