What Your Insurance Won't Cover: 10 Exclusions You Need to Know

As an insurance advisor, it's important to be aware of theexclusionsthat may exist in insurance policies. Below are 10 exclusions that are important for clients to know about:

1. Acts of God/Natural Disasters: Most insurance policies don't cover damage caused by natural disasters such as earthquakes, hurricanes, or floods. Clients may need to purchase additional coverage for these events.

2. War and Terrorism: Damage caused by war or terrorism is typically not covered by insurance policies. Clients may need to purchase separate coverage for these events.

3. Intentional Acts: If a client intentionally causes harm to themselves or others, insurance policies won't cover any resulting damages.

4. Criminal Acts: Insurance policies won't cover damages resulting from criminal acts such as theft or arson.

5. Business Activities: If a client uses their home for business purposes, damages related to that business activity may not be covered under their homeowners insurance policy.

6. Wear and Tear: Insurance policies won't cover damages resulting from normal wear and tear or lack of maintenance.

7. High-Risk Activities: If a client participates in high-risk activities such as skydiving or bungee jumping, damages resulting from those activities may not be covered by insurance policies.

8. Pre-Existing Conditions: Health insurance policies won't cover pre-existing medical conditions. Clients may need to purchase separate coverage or seek assistance through government programs.

9. Cosmetic Procedures: Mosthealth insurancepolicies won't covercosmetic proceduressuch as plastic surgery or teeth whitening.

10. Non-FDA Approved Treatments: Health insurance policies won't cover treatments or medications that haven't been approved by the FDA.

When it comes to choosing the right insurance policy, it's important to carefully review the policy's exclusions and limitations. Clients should also consider their personal and financial situation when selecting coverage amounts and deductibles.

For example, if a client has a high net worth, they may want to consider umbrella insurance to provide additional liability coverage. If they have a family, they may want to consider life insurance to provide financial support in the event of their death.

It's also important to regularly review and update insurance policies as necessary. Life changes such as marriage, divorce, or the birth of a child can impact insurance needs.

Ultimately, working with a trusted insurance advisor can help clients navigate the complex world of insurance and ensure they have the coverage they need to protect themselves and their assets.