GENERAL KNOWLEDGE

Detailed explanation-1: -Insurance exclusions are policy provisions that waive coverage for certain types of risks or events. Policy exclusions create a balance between coverage for fortuitous losses (losses you couldn’t have reasonably prepared for) and the need to remain solvent in order to pay those claims.

Detailed explanation-2: -Also known as a Rider. An exclusion or exception is a provision in the insurance policy that eliminates coverage for certain perils, events, property or liability.

Detailed explanation-3: -All–risk coverage, under which all losses are covered except those losses specifically excluded. If the loss is not excluded, then it is covered. Life insurance policies are typically all-risk policies.

Detailed explanation-4: -Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered. If something is poorly made or has a hidden defect, this is generally excluded and won’t be covered.