Exclusion

Exclusions are a big part of insurance wordings. Knowing what is excluded is just as important as knowing what is covered.

It is important that you realize that insurance is specific to the type of entity insured. Your house policy is not going to cover fire damage to your business or farm property unless it has been agreed upon by the insurer. You must disclose any business-type operation in your home to have gained this protection. This is similar to the situation where you have parked your car in the garage. If there is a fire then you would expect the car would be paid for under the house policy. It would not. It needs to be insured under the automobile policy.

Your property that is temporarily at an exhibition, fairground or exposition for the purpose of exhibition will not be have coverage under your basis Named Perils policy. If you have gained permission from the insurer then this exclusion would be removed.

If you have stolen property, whether it is kept, stored or transported or property that you could have seized due to your having it is contrary to law then it will not be paid for under a claim.

If your home has, to your knowledge, been vacant for more than 30 consecutive days then there will not be coverage for water damage, glass breakage or vandalism or malicious acts. It is important that you address this issue when moving out of your home with knowledge that it will not be occupied for the greater then 30 day period. You can drain pipes and shut off your water. Talk to your broker or agent.

There is no coverage for damage or loss as a result of a criminal act, an intentional act or failure to act by you or any other person insured under your policy or by any person who is directed to cause damage or loss by you or another person insured under the policy. This directly relates to acts such as arson - you cannot profit from a crime. Be aware that if your child had a friend burn your dwelling then that too would not be covered under your policy. Another good reason for children not to play with matches!

There is no coverage for the direct application of heat. The example most often used is if you were ironing your shirt and a fire results then the shirt is not going to be paid for - it is direct process damage. All the rest of the damage to property would be covered.

The escape of domestic fuel oil is not covered whether it is the release, discharge or dispersal of fuel oil.

These are the most basic exclusions. Different insurance companies can add coverage to their policies. Buying insurance for your home is like buying apples and oranges, you need to be informed about what you specifically want. Take the time to talk to your agent or broker and take control of your insurance. Ask questions and get the help you need.