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Texas insurance glossary

Exclusion

An exclusion is a clause naming something the policy does not cover, and it operates by carving that thing back out of coverage the policy has already granted.

Sources checked

Coverage is granted broadly and then narrowed. That structure is why reading only the front of a policy tells you very little: the insuring agreement says what is covered, and the exclusions decide what actually is.

The exclusions that catch Texas drivers out are mostly about who was driving and what for. A named driver policy excludes everyone not listed on it. Delivery and rideshare use is commonly excluded from a personal policy. Damage a driver caused on purpose is excluded everywhere.

An endorsement can remove an exclusion or add one, which is why the declarations page matters more than the booklet.

Sources: TDI — home insurance glossary; TDI — consumer bill of rights for personal automobile insurance (CB005); TDI — automobile insurance guide (CB020). Verified .

A definition, not legal advice and not a quote. Rules and figures change; confirm your own situation against the source named above, or with us, before you act on it. Last checked .

See also

  • Endorsement An endorsement is a document that changes a policy — adding, removing, restricting or clarifying coverage — and becomes part of the contract once it is issued.
  • Named driver policy A named driver policy is an auto policy that does not provide coverage for a person residing in the insured’s household unless that person is named on the policy.
  • Declarations page The declarations page is the summary at the front of a policy naming the insured, the vehicles or property, the coverages, the limits, the deductibles and the term.
  • Policy limits Policy limits are the most an insurer will pay under a given coverage, stated per person, per occurrence, or per policy period on the declarations page.

Where this is handled

Knowing what a coverage is called is not the same as knowing what is on your policy. One independent agency can read your declarations page with you and compare the markets that will write your record.

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