What are "common exclusions" in insurance policies?

The term "common exclusions" in insurance policies refers to specific risks or situations that are explicitly not covered by the policy. Insurers outline these exclusions in the policy documents to clarify what is not included in the coverage agreement. This is essential for policyholders to understand the limits of their insurance and helps manage expectations regarding claims.

Exclusions often involve scenarios that are either too risky or not conducive to the insurer’s business model, such as damages from certain natural disasters, wear and tear, or intentional acts. Knowing these exclusions allows policyholders to make informed decisions on whether additional coverage (usually through endorsements or riders) is needed for their specific needs. Understanding these exclusions is a vital part of navigating insurance policies, as it defines the boundaries of the coverage offered and highlights areas where policyholders may need to seek additional protection.