5 Basic Exclusions in Your Property Insurance Policy

Keeping your personal property safe is important. Property insurance coverage protects your property against many risks. However, have you thought about the exclusions in your property insurance policy?

Every property insurance policy has exclusions. It is important to realize that exclusions can be different depending on your particular property insurance coverage and what type of property is being covered under your property insurance policy. There are a few common exclusions that are usually contained in all property insurance policies; these property insurance exclusions are:

• Losses Not Caused by an Accident: Since it is certain your carpet will get worn out, insurance will not cover worn carpets along with other things that are considered certain to happen and not a risk. Insurance is designed to cover risks and not something, that is bound to happen over time such as wear and tear, rust, and mechanical breakdowns.
• Things that are Controllable: In order for an insurance company to make money, they need responsible people to maintain their property. This exclusion is designed to encourage policyholders to take care of their property. Scratching and breaking objects can be examples of things that are controllable by the insured.
• Extremely Hazardous Events: Some events are very hazardous that the insurance company would have to charge a much larger premium for the property insurance policy. These events, such as earthquakes, floods, and mudslides are usually not covered under a standard property insurance policy but can be added on if an insured would like the extra coverage.
• Major Disaster Losses: Huge losses such as a loss from a war or a nuclear disaster are usually not covered. These types of losses are not covered because catastrophic losses could cause an insurance company to go bankrupt and are generally rare.
• Coverage Exists Elsewhere: If the property already has its own insurance policy then it would be excluded. An example would be a car. Cars are not covered under a homeowners policy since they are required to have their own car insurance policy.