What Are Exclusions in Insurance?

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Exclusions in insurance are provisioins that exclude coverage for expenses incurred by a specific event. Exclusions in insurance helps keep premiums fair by eliminating the possibility for large payments for the few insured people who are at risk for unusual catastrophic events.

Health Insurance

Health insurance companies commonly have exclusions for certain preexisting medical conditions. An exclusion or impairment rider can sometimes be purchased to exclude expenses associated with a preexisting condition to allow a person with such a condition to get health insurance.

Home Owners

Homeowners insurers have exclusions on certain events. If the insured home is damaged under certain circumstances, for example an earthquake, the damage will not be covered under common policy provisions. There are policies available that are intended specifically to cover damage caused by earthquakes, floods, coal mine sink holes and other similar events.

Automobile Insurance

There are situations in which automobile insurance will not cover a loss. Common automobile insurance exclusions are injury or death of an employee, injury or death due to an intentional act, and injury or death when the vehicle is being used to transport people or property in exchange for money.

Life Insurance

Common life insurance policy exclusions are acts of war, suicide, preexisting medical condition and dangerous activity. There is special life insurance that can be purchased to cover death due to dangerous activities.

Disability Insurance

Disability insurance policies normally have exclusions on preexisting conditions, acts of war and disability as a result of illegal activity. There are disability policies that will limit coverage for mental and substance abuse disorders for two years.