EXCLUSIONS CON’T
T LIMITATIONS
T TERMINATION OF POLICY


Certain classes of property are specifically excluded from coverage because of the
nature of what they are or because they are generally covered by other types of
policies:
• Animals, birds or fish
• Motorized vehicles or aircraft, including equipment and accessories
• Radios, CB radios, tape decks, etc., while in or on a motor vehicle
• Articles separately described and specifically insured in any other
insurance
• Watercraft, its furnishings and equipment while away from the
premises
• Property of boarders
• Aircraft or aircraft parts
• Property in an apartment held for rental by the insured
• Property rented to others off the residential premises
Limitations
There are certain classes of property that have specialized limits of coverage. These
could include:
• Grave markers
• Loss by theft of jewelry or watches
• Money or related property, coins and precious metals other than tableware
• Property away from residence premises used for business purposes
• Trailers
• Liability arising out of ownership, maintenance, use, loading or unloading
of aircraft
• Motor vehicles or watercraft
• Securities and Manuscripts
• Loss or theft of firearms
• Liability arising from war or insurrection property on the residence
premises used for business purposes

TERMINATION OF POLICY

There are ways by which the policies can be terminated. These should be known to the
insured. These include:
Failure to Pay the Premium
Failure to pay the premium on one's insurance policy can result in termination of the
policy. Unlike other kinds of insurance, property and casualty insurance offers little to
no grace period on the time in which the premium must be paid.
Material Misrepresentation
Material misrepresentation is lying or not fully revealing one's circumstances on the
insurance application form. If the form asks if one has ever been convicted of arson and
one says no while in fact, they have indeed been convicted, the insurance company
may terminate the policy the moment they find out the truth.
Leaving The House or Insured Property Unattended
Leaving one's house or insured property unattended for a specified period of time can
result in the termination of the policy.
Knowingly Increasing the Risk of a Hazard
When the policy owner knowingly increases the risk of a hazard occurring on their
property, their policy can be terminated. An example of this would be if one stored
flammable chemicals in their house, instead of in their proper place. This increases the
risk to the insurance company and could terminate one's policy.


TERMINATION OF POLICY CON’T
• SUMMARY

Major change in the property that makes it uninsurable
Any major change in the property that makes it uninsurable could result in policy
termination.
Lack of common sense in regards to safety
If the policy owner continually files claims that show a lack of common sense in regards
to safety, the company may terminate the policy. If in August, the gas stove was left on
and as a result parts of the house burned down, and then in September, the same thing
happened with the same result, the company might terminate one's policy.

Others

Also, the insurance policy providing one's coverage does not have to renew the policy
when the time of coverage is at an end. The company might be going in a different
direction with their coverage, and the policyholder has no control over this. They may
also choose not to renew one's policy if they live in a declining neighborhood that has
an ever-increasing risk of fire and theft damage. However, sometimes when these
policies are not renewed, it is due to a form of redlining. Redlining is an illegal
insurance practice that can be dealt with by contacting the state's superintendent of
insurance or insurance commissioner.
How to save your policy from termination?
The most effective way to keep from having one's insurance terminated is to read the
policy very carefully when one first gets it. Most policies are very strict in what one can
and cannot do, and reading the policy is the only way to know if one is violating the
conditions of agreement.

SUMMARY

The lesson we just finished covered Homeowner’s Insurance. In this lesson, we saw
seven different types of Homeowner’s policies and discussed the insurer’s personal and
medical coverage under this insurance. We also discussed different discounts that an
insurer enjoys with this insurance. At the end, we took a look at different conditions that
lead to the termination of policy and which should be avoided by the insurer.