If you’ve ever filed a property damage claim only to be told your loss isn’t covered, you’ve likely run headfirst into the infamous world of insurance exclusions. The fine print that makes your blood boil and your wallet ache. 

And while we’ll be the first to say some exclusions are just plain absurd, they’re not always meant to scam you. It’s important to know why exclusions exist and how they could affect you.

Exclusions can expose you to unexpected costs, and that’s where understanding your policy (and having the right team in your corner) matters more than ever.

Why Exclusions Exist (Even If They Don’t Seem Fair)

Insurance carriers don’t just wing it when they price policies. Premiums are calculated based on risk; if all policies covered everything, many people wouldn’t be able to afford their coverage. Is it fair? No, but it’s our current reality. 

So exclusions carve out high-risk, high-cost, or hard-to-quantify perils. Things like:

• • • Sewer and drain backups
    • Earth movement (landslides, earthquakes)
    • Ordinance and Law/ code upgrades
    • Long-term wear and tear

These exclusions help carriers limit exposure, lower baseline premiums, and define what they’ll actually insure. Coverage decisions happen on paper; your losses happen in real life. 

Insurance logic might make sense in a boardroom or an actuarial spreadsheet, but when a storm floods your basement or your roof starts leaking, exclusions feel less like “smart risk management” and more like a loophole designed to avoid paying you. 

Common (Dare I Say Absurd) Exclusions We’re Seeing in 2025

We get it, exclusions are part of the game, but some of the new exclusions popping up over the last few years? Downright ridiculous. Here are a few exclusions our team has seen time and time again:

• • • Storm surge isn’t covered under some flood policies. Yes, really. Even when it’s a storm surge causing flooding in a home during a storm.  
    • Wind-driven rain through a wall or soffit? Some policies do not cover it, even though the property is in a hurricane-prone area. 
    • Secondary damage, like mold or rot from a slow leak, is often denied under negligence, or the policy has specific exclusions against it. 

The fine print is getting finer and more costly. We review policies with a microscope and flag the traps before they become financial sinkholes. 

Endorsements: The (Often Overlooked) Solution

Here’s the part insurance carriers don’t exactly advertise: Many exclusions can be bought back through endorsements. 

Endorsements are add-ons to your policy providing coverage for specific excluded risks, such as the exclusions we listed above. 

The catch? You have to know to ask about them. 

To learn more about endorsements, read our blog: New Endorsements May Impact the Claims Process for Property Owners

What Can You Do Right Now?

1. Get a Free Policy Review

Premier Claims regularly reviews policies to identify gaps in coverage. We help property owners understand their coverage risks and weigh the cost of an endorsement. You don’t have to wait for disaster to strike to have your policy reviewed! Reviewing your policy before a loss happens can help you build a solid foundation for potential future claims. 

2. Evaluate Your Risk

Do you live in a flood zone? Do you have an older roof? Do you live in a wildfire area? Factors like these can influence your coverage strategy, not just your carrier’s. 

3. Work with a Trusted Public Adjuster

Having a trusted and licensed public adjuster on your team can make all the difference in your policy understanding and potential claim outcomes. To learn more about finding a trusted public adjuster near you, read our full blog: Choose a Trustworthy Public Adjuster.

Exclusions Protect the System, Not the Property Owner

Policy exclusions are, in theory, designed to protect the system. But in practice, they often leave property owners with surprise expenses, unclear guidance, and denied claims they could’ve avoided. 

At Premier Claims, we don’t just review policies, we interpret them. We challenge unfair claim denials, uncover missed coverage, and fight to make the policy work the way it should. 

When you work with us, you’re not navigating exclusions alone. 

Submit your policy for a free review today!

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