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How Do I Find Exclusions In My Insurance Policy? Remember DICEE

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Exclusions In My Insurance Policy – Look For The First E in DICEE. 

The article comes from a reader question – where are the Exclusion in my insurance policy and are they the same as Declarations? 

bee sting exclusions in my insurance policy
(c) Public Domain – US Library of Congress

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 on 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 

Insurance agreement Exclusions in my insurance policy coverage
Wikimedia Common – Visem

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 do I find exclusions in my insurance policy is under the Exclusion section ant throughout the policy, so read it closely.

 

©J&L Risk Management Inc Copyright Notice

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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