When an insurance attorney gets a new client on an insurance related claim, one of the first things he wants, is a copy of the policy to read. And when he reads the policy, he wants to know what the exclusions are that are in the policy.
The basic form and broad form business policy contains exclusions. In fact, the many pages of an insurance policy are, when read, pages explaining what is excluded or limitations on what will be paid. Sample exclusions on the broad form are:
- Ordinance or law — When a building is not in compliance or conformity with local building codes or laws and must be rebuilt or replaced, local laws require that the new structure conform to current requirements. Because ordinance or law exposures are not anticipated by basic premium rates, the cause of loss forms contain an ordinance or law exclusion, which excludes any part of a loss resulting from the enforcement of any ordinance or law regulating the construction or repair of property. This is discussed in the 1962, Texas Supreme Court opinion styled, Employers Mutual Casualty Co. of Des Moines v. Nelson.