What do exclusions in an insurance policy define?

Exclusions in an insurance policy are critical as they explicitly outline the specific incidents, risks, or types of damages that are not covered by the insurance. This means that if a claim arises from those excluded items, the insurer will not provide coverage or compensation. Understanding exclusions is essential for policyholders because it helps them comprehend the limitations of their insurance coverage and ensures they are aware of any potential gaps in protection. This also emphasizes the importance of reviewing policy details to make informed decisions about additional coverage or endorsements if certain risks are deemed significant.