When you’re considering putting in place insurance, you might spend a bit of time thinking about the amount you want to be covered for.

This makes sense, because it’s a headline number and often pretty easy to understand and compare. Do you know what your policy doesn’t cover, though?

Exclusions can be just as important as the amount of cover you have, because they can determine how and when your policy applies. Understanding them upfront can make a big difference.

What’s an exclusion, anyway?

When we’re talking about insurance, an exclusion is something that an insurer won’t pay out a claim for – either for a set period, or for the term of the policy.

This might include pre-existing conditions, such as an illness you suffered before you took out a life or health insurance policy, cover for risky activities or illegal activities.

Exclusions may be underwriting exclusions (which means they apply to you and your policy specifically) or  exclusions in the policy wording (which means they will apply to all people who have that type of policy).

How can they be managed?

Whether any exclusions apply is an important thing to consider when you’re thinking about taking out a new policy.

It’s also important to understand how exclusions may apply to any cover you already have.

If you currently have insurance in place that covers a pre-existing condition, moving to a new policy that will exclude it may not be appropriate. As your advisers, we can help you work through the ways that you might approach this.

Sometimes, underwriting exclusions are temporary. A pre-existing condition might be covered after a set period of time. Or you might be able to apply to have another underwriting exclusion removed, if it no longer applies to you.

We can talk through underwriting exclusions with you, but policy wording exclusions are generally more complex as they depend on specific conditions being present at claim time.

It’s important to disclose fully

It’s important that you are upfront and honest with your insurer when you are taking out new insurance or extending your current cover – or really, at all times when you’re dealing with the insurer.

Intentionally failing to disclose required information in your application is a form of misrepresentation and may be considered contract fraud. Non-disclosure of information can also affect whether a future claim will be paid.

Provide your insurer – and us as your adviser – with all the relevant information at the outset, so that we can work together to put in place cover that is suitable and appropriate for your circumstances. You might even be pleasantly surprised at what can be achieved.

Review your cover regularly

Don’t set and forget your insurance cover. We can work with you to ensure it is reviewed regularly. This is a great opportunity to look at the exclusions that might be in place and whether there is an opportunity to amend or remove any of them.

Insurance should change and work with you as you go through different life stages.

We’re here to help you manage that.

Want to discuss your options?

Understanding insurance exclusions means you’re less likely to face surprises if you need to claim. It’s also easier to compare what’s on offer from the different insurers you might be considering.

Your SHARE adviser can explain what might apply to your personal situation, and highlight what could change over time.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.