Direct answer
What does Exclusion mean?
A policy provision that removes specified property, causes of loss, people or situations from coverage.
Exam cue: A broad coverage summary cannot override the actual exclusion and endorsement language.
What does it look like in a question?
New York example
A standard policy may exclude a type of loss that requires separate coverage.
Common exam trap
What should you not confuse it with?
An exclusion is different from a deductible, which allocates part of a covered loss to the insured.
Related property insurance terms
Actual cash valueA loss-settlement measure commonly based on replacement cost less depreciation, subject to the policy language.DeductibleThe portion of a covered loss the insured must bear before the insurer's payment is calculated under the policy.HazardA condition that increases the chance or severity of loss.Liability coverageInsurance protection for covered claims that the insured is legally responsible for bodily injury or property damage to others.PerilAn event or cause of loss, such as fire or theft, addressed by the insurance contract.PremiumThe amount charged for insurance coverage for a stated period.
Sources used2 references with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
- Real Estate Salesperson 77-Hour CurriculumNew York State Department of StateSupports: Exam scopeSection: Subject 12, Property Insurance
- Homeowners Insurance: Basic Coverage and Adding CoverageNew York State Department of Financial ServicesSupports: Consumer contextSection: Homeowners coverage, liability and deductibles
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