Valid Texas Insurance Coverage Exclusions

July 22, 2011 (Press-News.org) Valid Texas Insurance Coverage Exclusions

An insurance exclusion is an act, property or type of damage not covered by an insurance policy. The idea is to exclude some specific high-risk or extreme liability events that would otherwise have been covered by the general policy in order to lower the cost of the insurance. The following article will discuss certain policy exclusions that have been upheld as valid in Texas.

Home and Real Property Insurance Exclusions

Well-established valid exclusions for home insurance include flood or earthquake damages (although storm damage is usually covered), acts of war, damage from power failure, costs to bring the property up to code and damages arising from neglect.

Motor vehicles are also allowable exclusions in comprehensive coverage. For example, most business property insurance policies will not include coverage for damage to motor vehicles. A business must get separate coverage for automobiles, boats and airplanes.

Liability Exclusions

Texas courts have upheld many kinds of exclusions for liability insurance. Valid exclusions include:
-An exclusion for intentional acts that cause injury
-An exclusion for liability arising from a business pursuit
-An exclusion for liability arising out of pollution

Vehicle Exclusions

Common insurance exclusions for vehicles include damages from driving under the influence, modifications to the car and lack of reasonable care when operating the vehicle. States have a mixed view on whether an insurance company can exclude at-risk drivers, such as teenage children, from the named insureds. Texas currently allows such exclusions.

Consult an Attorney With Questions

Defending an exclusion in court is complicated and requires an experienced insurance defense firm. In court, the insured does not need to prove in the original lawsuit that the loss was not included in any of the policy exclusions. Rather, the insurer must prove, as a defense, that the event causing damage or harm was excluded. Many policy exclusions are continuously subject to litigation. If you have a question regarding a particular exclusion, consult with an experienced insurance defense firm with questions.

Article provided by Barker, Leon & Fancher, LLP
Visit us at http://www.blfmlaw.com