An exclusion removes a particular cause, activity, condition, or type of loss from coverage. It can apply throughout a policy or only to one section. Common examples include ordinary wear and tear in property cover and specified treatments in health insurance, although actual exclusions differ by contract.
In Nepal, a property owner should check whether earthquake or flood is included or requires additional cover. An excluded event may produce no payment even when the sum insured is high. Read exclusions alongside any endorsement because an amendment may change the standard wording.