War Exclusion Clause

What Does War Exclusion Clause Mean?

A war exclusion clause is a provision in an insurance contract specifying that damages caused by acts of war are not covered. Commonly included in most insurance policies, it often extends to acts of terrorism as well. Life, disability, homeowner, auto, and nearly all other types of insurance typically include some form of war exclusion clause.

Insuranceopedia Explains War Exclusion Clause

Insurance companies generally exclude damages caused by war for two main reasons. First, the widespread destruction caused by war could result in catastrophic losses that would likely bankrupt the insurer. Second, if an insured individual voluntarily joins the military and participates in war, they are knowingly exposing themselves to a significantly higher risk of injury or death. As a result, many life and disability insurance policies exclude coverage for war-related losses. Because the wording of these exclusions varies, it pays to read the fine print and compare options when shopping among the best life insurance companies, since some insurers apply broader war and terrorism exclusions than others.

However, specific policies are designed to cover war-related damages. For instance, some insurers offer commercial policies to companies operating in politically unstable regions. Additionally, the government provides war-related insurance, such as life and disability coverage, for soldiers. Civilians in occupations with elevated combat or travel risk should also check the war exclusion language in their disability insurance policy, since these exclusions can apply even when the policyholder is not in the military.