What does the term "exclusion" mean in an insurance policy?

In the context of an insurance policy, "exclusion" refers to specific conditions or circumstances that are not covered by the policy. Exclusions are explicitly delineated in the policy documents to inform policyholders about what is not included in their coverage. These may encompass a range of scenarios, such as certain pre-existing conditions, acts of war, or natural disasters, depending on the type of insurance.

Understanding exclusions is crucial for policyholders as it helps them make informed decisions about any potential gaps in their coverage. Knowing what is excluded from coverage can also assist customers in determining whether they need additional policies or riders to ensure adequate protection against specific risks.