Insurance policies are there to insulate us from the devastating financial effects of certain situations. There’s your car insurance, life insurance and health insurance. However, the worst part about having insurance is finding that what happened to you is not covered by your policy.
To avoid such a situation, let’s examine three common insurance policy exclusions.
Preexisting conditions
Preexisting conditions are among the most common exclusions in health and life insurance policies. These are medical conditions that existed before the policy was purchased. Insurers often exclude these conditions to avoid covering illnesses or injuries that the policyholder already had.
For example, if you have diabetes before buying a health insurance policy, any diabetes-related treatment might not be covered. It’s essential to read the fine print and disclose all preexisting conditions when applying for insurance to understand what is and isn’t covered.
Acts of war and terrorism
Many insurance policies, including travel, property and life insurance, exclude coverage for damages or losses caused by acts of war and terrorism. This exclusion is due to the unpredictable and catastrophic nature of such events, which can lead to massive claims that insurers might be unable to cover.
Intentional acts
Insurance covers accidental and unforeseen events, not intentional or criminal acts. Therefore, most policies exclude coverage for damages or losses resulting from intentional acts by the policyholder. For example, if you intentionally fire your property, your homeowner’s insurance policy will not cover the damages.
Understanding the common exclusions in insurance policies can help you make informed decisions and avoid unexpected financial burdens. If you find the exclusions or terms of your policy confusing or encounter issues when filing a claim, it may be best to seek legal advice to ensure your rights are protected.
