In the insurance industry, there are different types of insurance that will suit your needs. And with this are the different provisions stated in your account policy once you decided to take one. These are the different parts of the policy that you need to take into consideration to avoid misunderstanding during claims. You also have to let your insurance agent to clarify all of these things during settling an agreement.
One of these provisions is the Exclusion. Exclusion is a part of one’s insurance policy that excludes or eliminates coverage of certain expenses acquired from certain events due to the insured’s willful and unintentional acts.
For instance you used your car for a business trip and unfortunately you where hit by a big rock, your personal auto insurance will not cover your vehicle because you used your car for commercial or business operations. This is one inclusion that you would be mindful enough and be taken into consideration when applying for an insurance policy.
When you sign up for an insurance policy, an exclusion clause may be made visible in the contract. This states the excuse of the party to any expenses and liabilities that is covered by the exclusion clause. Make sure that you were able to read this exclusion clause because you might be surprised when unexpected cases may rise.
An example of an exclusion clause that can be made by the insurance company is in events of negligence. If a house was burned down due to a lit candle may not be covered by the insurance company due to the fact that it was an act of negligence. You may not be able to file for a claim. The insurance company is not hold liable for the cost of the damages.
In a life insurance policy, common exclusions are suicide, acts of war, preexisting medical conditions, and dangerous activity. In case of deaths due to a dangerous act, one can purchase another type of insurance.
Homeowners insurance also has exclusions for specific events. For example in case of flood, this may not be covered under this provision. You have to purchase another type of insurance policy that will cover these events such as earthquakes and other similar events.
Health insurance on the other hand has exclusions on preexisting medical conditions and this should be noted to get the best of your policy.
Sometimes exclusion clause can cross the line and be illegal. Always consult a lawyer or from government official to ask references and help when you are still confused with the legality of exclusion in an insurance policy. To make sure about the contract that you’ll be signing, take into account to ask for an advice or bring a lawyer to lay out all the facts and the conditions of the contract. It is best that you should know every single detail and benefits that you’ll be gaining so if ever you’ll be needing add-ons on your policy; it’s not going to be too late.
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