Finance glossary
Exclusion
Also known as: Policy exclusion
In simple terms
An exclusion is something your policy specifically does not cover. It is written into the terms, so if you claim for an excluded situation the insurer can turn the claim down.
On this page
What does exclusion mean?
An exclusion is a stated limit on what a policy covers — a circumstance, cause or item that is left out. Common examples include wear and tear, pre-existing medical conditions on travel cover, or damage from lack of maintenance.
Exclusions are part of defining the cover: they draw the line between what the insurer will and will not pay for, and they sit alongside the excess and cover limits in shaping any claim.
How exclusions work
Exclusions are set out in the policy wording and summarised in the Insurance Product Information Document you get before buying. When you claim, the insurer checks whether an exclusion applies to what happened.
Some exclusions can be removed by paying for an add-on — for example, covering a pre-existing condition on travel insurance, or accidental damage on a home policy. Others are fixed features of the product.
How could this affect me?
Exclusions are the most common reason claims are refused, so a cheap policy riddled with exclusions can be poor value. Reading them before you buy tells you what you are really covered for.
If a claim is turned down on an exclusion you were not clearly told about, or that was hidden in unclear wording, you can challenge it — insurers must draw important terms and exclusions to your attention.
Things to watch out for
- Exclusions are the most common reason claims get refused — read them before you buy.
- A very cheap policy often carries the widest exclusions.
- Pre-existing conditions, wear and tear and unoccupied properties are common exclusions.
- Some exclusions can be bought out with an add-on — check what it costs.
Know your rights
- Insurers must give you clear pre-sale information (an Insurance Product Information Document) and draw significant or unusual exclusions to your attention under FCA rules.
- A term that is unclear or hidden may be unenforceable, and unfair contract terms are challengeable under the Consumer Rights Act 2015.
- If a claim is rejected on an exclusion you think is unfair or was not made clear, you can complain and escalate to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- FCA, ICOBS 6 — product information and significant exclusions (opens in a new tab). Accessed 22 Aug 2026.
- legislation.gov.uk, Consumer Rights Act 2015 — unfair terms (opens in a new tab). Accessed 22 Aug 2026.