exclusion
A specific provision or clause within an insurance policy that explicitly eliminates coverage for certain risks, properties, or perils.
Exclusions are the 'fine print' of what is NOT covered. They protect insurance companies from predictable, catastrophic, or wear-and-tear events (like war or mold) that cannot be safely insured.
Word relationships
- omission: An omission is something left out, often accidentally, while an exclusion in insurance is a deliberate, legally binding clause.
- limitation: A limitation restricts the amount or scope of coverage, whereas an exclusion completely removes coverage for a specific event.
- inclusion: An inclusion is something that is explicitly covered or added to a policy.
- endorsement: An endorsement often adds coverage back in, whereas an exclusion takes coverage away.
Commonly confused with
- endorsement: An exclusion removes coverage; an endorsement modifies or adds coverage.
Word family
- exclude (verb): To keep out or leave out.
- exclusive (adjective): Restricted to a particular group or person.
Collocations
- policy exclusion
- flood exclusion
- explicit exclusion
- subject to exclusion
Example sentences
- "The policy contains a strict exclusion for damage caused by wear and tear or lack of maintenance." Policy Fine Print
Memory hook
An 'exclusion' 'excludes' certain disasters from being paid for. Exclusion shuts the door on coverage.
When not to use
Do not confuse with 'exception', which is something that is allowed or included despite a general rule, whereas an exclusion is a permanent omission.
Fun facts
- The word 'claustrophobia' (fear of enclosed spaces) shares the same Latin root 'claudere' (to shut) as 'exclusion'.
Related words
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