Understanding Exclusions and Limitations

When you purchase an insurance policy for your home or property, you want to make sure you thoroughly understand what you’re buying. Although you will certainly want to make sure your policy covers what you want, you’ll also want to understand what is not covered by your policy. These items or events that are not covered most often present themselves as exclusions or limitations. Here’s more about these two insurance terms and what they might mean for your policy.

What Is an Exclusion?

An exclusion is a written statement that describes a condition or type of loss that is not covered by your insurance policy. For example, in many property insurance policies, wear and tear is an exclusion. Depending on where you live and who you have coverage through, the verbiage and severity of the exclusion changes. 

In some cases, any damage that comes from normal wear and tear in any form might not be covered. However, in other cases, damage from issues such as leaky plumbing might be approved. This is why it’s always important to thoroughly read and understand your insurance policy before you purchase it.

Some other events that are commonly excluded are earthquakes, mold, frost, landslides, and insect or rodent infestation. If you would like to make sure these events are covered, it’s best to purchase a policy specifically for the event.

What Is a Limitation?

A limitation is similar to an exclusion because it amends your property coverage. With limitations, your insurance company puts specific terms or conditions on your coverage. For example, a limitation would say that a specific incident is covered (or excluded) if there are certain circumstances or if the event happens within a specified period of time.

One of the most common examples of an insurance limitation is these new water damage endorsements appearing in many policies which will limit your recovery of the damage by $10,000.00, for example. If you need to completely replace the drainline in your home, your carrier will only pay you $10,000.00 which includes the costs of drying out your home. These limitations are placed in your policy by your insurance carrier when it is renewed every year. Insurance carriers are required to give you notice any changes in your policy but these changes are not highlighted and are usually sent by mail along with a large stack of other policy changes which don’t really affect how your policy is read. It is very common lately to find that many of the things you would expect to be covered by your policy is being excluded or severely limited. 

Do You Have a Property Insurance Problem?

If you are unsure of whether your current insurance policy provides the complete coverage that you need or if you have suddenly discovered that it does not, Barnard Law Offices can help. Our attorneys are experts at handing property insurance issues. We are happy to answer your questions and help however we can. Give us a call today at (305) 665-0000 or contact us online.

The following two tabs change content below.

Barnard Law Offices

The Barnard Law Offices, L.P. has been protecting the rights of Floridians for four generations. Together our attorneys bring years of insurance claim advocacy and trial experience to the table. We don’t believe in half-hearted measures when it comes to proving your claim: after inspecting the damage to your property, our office will engage or connect you with high-quality third-party professionals to assist you with your claim and assess your property damage. Our talented team is dedicated to serving each client’s needs with a passion and commitment that makes us stand out among our peers.
%d bloggers like this: