What is an exclusion in an insurance policy?

An exclusion gives a condition for which an insurance policy does not cover. You may have homeowners insurance. It may exclude damage to vehicles. You would need to have a separate insurance policy on your car.

If a hurricane came and the roof was blown off your house and your car was blown away. Your homeowners would pay for your roof but not your car. If you have collision insurance, it would pay for your car. Your homeowners would have an exclusion clause excluding your car.