War Exclusion Clause
What Does War Exclusion Clause Mean?
A war exclusion clause is a provision in an insurance contract specifying that damages caused by acts of war are not covered. Commonly included in most insurance policies, it often extends to acts of terrorism as well. Life, disability, homeowner, auto, and nearly all other types of insurance typically include some form of war exclusion clause.
Insuranceopedia Explains War Exclusion Clause
Insurance companies generally exclude damages caused by war for two main reasons. First, the widespread destruction caused by war could result in catastrophic losses that would likely bankrupt the insurer. Second, if an insured individual voluntarily joins the military and participates in war, they are knowingly exposing themselves to a significantly higher risk of injury or death. As a result, many life and disability insurance policies exclude coverage for war-related losses.
However, specific policies are designed to cover war-related damages. For instance, some insurers offer commercial policies to companies operating in politically unstable regions. Additionally, the government provides war-related insurance, such as life and disability coverage, for soldiers.
