Understanding what your policy excludes can save a lot of headaches in the event you have a claim. Every policy holder should read their policy from front to cover. You are buying a legal contract that will determine if an insurance company will pay for the damages resulting from a claim. Court cases have determined that ignorance is no excuse and that policy holders are responsible for reading and understanding their policies.

Here is a list of some common policy exclusions. Note that most exclusions can be covered by purchasing a separate and specific insurance policy:

Some Common Exclusions

Property:

• Earthquake - Including Earthquake Sprinkler Leakage
• Flood including sewer & drain backup.
• Electrical Arching, Mechanical Breakdown, Explosion
• Off Premises Power Failure
• Building Ordinance
• Demolition
• Loss to undamaged portion of building due to ordinance/law

General Liability:

• Absolute Pollution
• Employment Practices - Discrimination, Wrongful Discharge, Sexual Harassment
• Director’s & Officer's Liability
• Professional Liability - Rendering or failure to render professional service.
• Punitive and/or Exemplary Damages

Business Auto:

• Rental Car Physical Damage
• Loss of Income due to down time

Truckers:

• Trailer Interchange
• Non-owned Auto - Private Passenger Vehicles
• Non-Trucking Use (Bobtail Coverage)

Umbrella:

• Hostile Fire

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