What does "exclusions" in insurance refer to?

In the context of insurance, "exclusions" refer specifically to circumstances or situations that are not covered by the policy. These exclusions outline what the insurer will not pay for, ensuring that both the insurer and the insured have a clear understanding of the limitations of coverage. For example, many policies might exclude certain natural disasters, pre-existing conditions, or acts of war. This helps in managing expectations and risks for both parties involved.

The purpose of exclusions is also to limit the insurer's liability and ensure that coverage is provided only for certain agreed-upon risks. Understanding exclusions is crucial for policyholders so that they can make informed decisions about additional coverage or endorsements they may need to adequately protect against uncovered risks.