Exclusions
Exclusions are the things your insurance policy won't cover—they're the fine print that tells you what scenarios fall outside your coverage.
Definition maintained by the InsurTool Editorial Team. Last reviewed .
Core Takeaways
- Exclusions are events, situations, or property specifically not covered by an insurance policy.
- Understanding exclusions is just as important as understanding what’s covered.
- Common exclusions include flood, earthquake, war, and intentional damage.
- Some exclusions can be covered through endorsements or separate policies.
What are Exclusions?
In plain English: Exclusions are the “fine print” of your policy. They tell you what your insurance won’t pay for, no matter what.
Common Types of Exclusions
- Peril Exclusions — Specific events not covered, like flood, earthquake, or war
- Property Exclusions — Types of property not covered, like jewelry over a certain limit
- Location Exclusions — Damage occurring in specific locations, like outside your home country
- Activity Exclusions — Damage from certain activities, like using your car for business
Common Exclusions by Policy Type
Homeowners Insurance Exclusions
- Flood damage
- Earthquake and earth movement
- Sewer or drain backup
- Gradual damage (mold, wear and tear)
- Intentional damage
- Business activities conducted at home
Auto Insurance Exclusions
- Using your car for commercial purposes
- Racing or reckless driving
- Driving without a valid license
- Damage from war or nuclear hazards
Health Insurance Exclusions
- Cosmetic procedures
- Experimental treatments
- Pre-existing conditions (in some cases)
- Elective procedures
Important: I’ve tested our insurance calculators against these exclusions, and they help highlight when you might need additional coverage. For instance, if you live in a flood zone, our flood insurance calculator will show you what a separate policy might cost—worth considering since flood is almost always excluded from standard home policies.
How to Deal With Exclusions
- Read your policy carefully: Know what’s excluded before you need to file a claim
- Ask your agent: They can explain exclusions in plain English
- Consider endorsements: Many exclusions can be covered with additional coverage
- Purchase separate policies: For excluded perils like flood or earthquake
Authoritative Sources
For more information on insurance exclusions, visit these trusted resources:
- Insurance Information Institute (III)
- National Association of Insurance Commissioners (NAIC)
- FEMA - Flood Insurance
Frequently Asked Questions
Can I get coverage for excluded perils?
Yes, many excluded perils can be covered through endorsements or separate policies. For example, you can add flood or earthquake coverage to your homeowners policy.
Why do policies have exclusions?
Exclusions help insurers manage risk and keep premiums affordable. Without exclusions, premiums would be much higher because insurers would have to cover every possible scenario.
Are exclusions the same for all policies?
No, exclusions can vary between insurers and policy types. It’s important to review the specific exclusions in your policy.
What should I do if I’m unsure about an exclusion?
Talk to your insurance agent. They can explain what’s excluded and help you determine if you need additional coverage.
About this definition
Written and checked against the primary sources linked on this page by the InsurTool Editorial Team. Definitions describe how these terms are used in the United States; policy wording differs between insurers, and state law changes the meaning of some terms. Your own policy document is the authority for your coverage.
Found something wrong? Tell us — corrections are checked at the source and recorded. Read our editorial policy.