Excluded Risks

Excluded risks refer to specific situations, events, or conditions that are not covered by an insurance policy or agreement. For example, if you have homeowner's insurance, it might cover fire damage but exclude flooding. This means that if a flood occurs, you won’t receive compensation for any resulting damage. Understanding excluded risks is crucial because it helps individuals and businesses identify what is and isn’t protected, allowing for better decision-making about additional coverage or risk management strategies to safeguard against potential losses.