Exclusions In My Insurance Policy – Look For The First E in DICEE.
The article comes from a reader’s question – where are the Exclusion in my insurance policy and are they the same as Declarations?
The answer to the question is no the Exclusions in an insurance policy are not the policy declarations. One of the first terms I learned long ago in one insurance training class is to remember the term DICE like the dice you roll in a board game and then add another E.
DICEE is the acronym for policy sections:
- Declarations –most people read only this part of the policy.
- Inclusions (Insuring Agreements)
- Conditions
- Exclusions
- Endorsements – your policy can have an unlimited number of these.
Exclusions represent the basic definition of the word –
An exclusion is any loss or damage that isn’t covered by your insurance policy (read: you won’t be able to file a claim for them).
One different aspect of Exclusions is they appear all throughout a policy, not just in the Exclusions section.
Endorsed Exclusions
One area where many unknowledgeable insureds have been stung (hence the picture above) originates with exclusions being added after the policy was purchased from your insurance carrier.
We often receive calls from employers and private citizens asking questions about the policy exclusions that happen due to endorsement.
Many state governments have looked into insurance carriers altering policy provisions policy once the policy has started and the insured has paid their premium.
Read any Endorsed Exclusions very carefully. Use the best policy review tool available (old school) to find out what is contained in any endorsement.
If you ever have any questions, call your agent. I was able to shave off 15% on my car and home policies by sending my agent a note two weeks ago.
Usually, states severely limit the ability to endorse any exclusions after policy inception. Then again, one must ask if an endorsement removes an inclusion, is that not the same as adding an exclusion?
According to Insure.Com, the exclusions in an HO3 – your ordinary Homeowner’s policy are:
HO-3 Policy Exclusions
An HO-3 policy is often called a “special form” because it covers everything except certain perils outlined in the policy. It is the most popular type of policy.
The standard HO-3 policy contains these exclusions:
- Ordinance or law: such as demolition or construction required to bring your house up to code.
- Earth movement: such as earthquakes, shockwaves, sinkholes, landslides, and mudflows.
- Water damage: such as floods, sewer back-ups, and water that seeps through the foundation. <Please note this Exclusion makes the need for Flood Insurance critical>
- Power failure
- Neglect: meaning you failed to take reasonable means to save your property during or after a loss.
- War: including undeclared war and civil war.
- Nuclear hazard
- Intentional loss: meaning something you did on purpose with the intent to cause a loss.
- Governmental action: such as the destruction, confiscation, or seizure of covered property by any governmental or public authority.
- Loss to property: resulting from faulty zoning, bad repair or workmanship, faulty construction materials, and defective maintenance.
Pull out your homeowner’s policy – you will see these under the Exclusion Section. Review your automobile policy, there are many exclusions with autos.
So, the answer to where I find exclusions in my insurance policy is under the Exclusion section and throughout the policy, so read it closely.
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