Insurance is designed to provide financial protection when life takes an unexpected turn.
But to make the most of your cover, it’s essential to understand not only what conditions your policy includes, but also what it excludes. These exclusions can be easily overlooked, until a claim is made and something isn’t covered.
What are policy exclusions?
Exclusions are specific conditions, activities, or circumstances that are not covered by your insurance policy. These can include:
Standard exclusions: Automatically applied to all policies of a certain type, or
Underwritten exclusions: Applied based on your personal health, lifestyle, or occupation during the application process.
Here are some common examples:
Pre-existing medical conditions
These are health issues that existed before your policy started. If a condition is not disclosed during the application process, or if the insurer excludes it based on your medical history, any future claim related to that condition may not be covered. For example, someone with a history of heart issues who doesn’t disclose it may have a related claim declined. Even when fully disclosed, some conditions may still be excluded or accepted with a premium loading.
High-risk pastimes
Activities like skydiving, motorsports, scuba diving, or mountaineering may be excluded due to the increased risk involved. Some insurers apply blanket exclusions, while others may offer cover with specific conditions or at an additional cost. If you take part in any high-risk activities such as these, it’s important to disclose them during the application process.
Occupational risks
Certain jobs carry a higher level of risk, particularly those involving hazardous environments or physical danger, such as some types of construction, aviation, forestry, or working at heights. Depending on your role and exposure, insurers may apply exclusions or modify the policy terms.
These exclusions help insurers manage risk and keep cover affordable and sustainable. But they also highlight the importance of full and honest disclosure at application time.
If relevant details like your medical history, lifestyle, or work duties are left out, the insurer may decline a future claim, even if the cause of the illness or injury seems unrelated. Undisclosed information may also result in your policy being cancelled.
Why expert advice makes a difference
Exclusions may not always be obvious, and they can vary significantly between insurers. That’s where expert advice makes a real difference.
An insurance adviser can explain how exclusions apply to your specific situation, including your health, occupation, and lifestyle. They’ll also help ensure everything is properly disclosed when you apply for cover, and recommend a policy that is appropriate your needs. If a claim needs to be made, your adviser is there to support you, especially if questions arise around an exclusion.
With the right advice upfront, you’ll know exactly where you stand and have peace of mind knowing your cover is fit for purpose and ready to do its job when it matters most.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
