A standard homeowners insurance policy contains exclusions, or causes of loss that aren’t covered. Policy exclusions include earthquakes, flooding, or property that is damaged due to poor maintenance. Insurance companies also offer coverage add-ons, or endorsements, that can expand the coverage in your policy.

Why are there exclusions in insurance policies?

Insurance exclusions are policy provisions that waive coverage for certain types of risks or ‘events. ‘ They are an important way that an insurer can narrow the range of coverage—with an exclusion clause—for risks that they are unwilling to cover.

What kind of insurance do I need for a unit?

Wondering if you need insurance for your apartment, unit or townhouse? If you live in a strata-titled property such as an apartment, unit, or townhouse, damage to the building and common areas, like gyms and pools, should be covered by compulsory strata insurance.

What are exclusions in homeowner’s insurance policy?

For example, acts of war, general wear and tear, sudden property value downward shifts, floods, and nuclear disaster damage are all things that may not be covered by a standard homeowner’s policy. In addition, certain other perils may only be covered some of the time. Otherwise, they may be excluded. Mold is one of these perils.

How are exclusions eliminated in a business insurance policy?

Some exclusions can be eliminated if you’re willing to pay an additional premium. For instance, the standard general liability policy excludes claims arising out of injuries inflicted by one employee against another. Many businesses buy back coverage for co-employee claims by purchasing fellow employee coverage .

Why is damage excluded from commercial property insurance?

Such damage is excluded under most commercial property policies because it is easily prevented by the insured. Not Accidental: Most insurance policies cover fortuitous events. Thus, they exclude losses the insured caused intentionally.

Why is wear and tear excluded from property insurance?

Some risks, such as wear and tear, are excluded because they are naturally occurring events that can be controlled by the policyholder through proper maintenance. 4 5 Damage caused by wear and tear is excluded from both commercial property policies and auto physical damage insurance.