What is the purpose of an insurance policy's "exclusions" section?

The purpose of an insurance policy's "exclusions" section is to outline what is not covered by the policy. This section is crucial because it helps policyholders understand the limitations of their coverage and what specific risks or events the insurance company will not provide financial protection against. By clearly stating exclusions, insurers aim to reduce misunderstandings and disputes regarding claims. This transparency ensures that individuals know precisely the scope of their coverage and can make informed decisions about their insurance needs. Notably, the exclusions list can help highlight potential gaps in coverage that might need to be addressed through additional policies or endorsements.