Exclusions

Exclusions define specific situations or occurrences where equipment damage or loss is not covered by your policy. While your policy offers comprehensive coverage for most common causes of loss or damage, it is essential to be aware of these exclusions.

Key Exclusions:

1. High-Value Rentals and Ownership:
   • If you rent an item individually valued above $150,000, you must note this on your policy for coverage to apply.
   • If you own items valued above $2,000, you must explicitly list them on your policy for coverage. Newly acquired items over $2,000 must be listed within 90 days, or they will be excluded from coverage.
2. Rental Income Limitations:
   • If you rent out your owned equipment, it is not covered unless rental income constitutes less than 25% of your gross annual income. Rentals should remain a side business rather than your core business.
3. Theft from an Unlocked Vehicle:
   • This is specifically excluded unless you have added special coverage for it while applying online. You can also add this coverage post-purchase.

Additional Specific Exclusions:

• Equipment breakdown due to wear and tear.
• Deterioration.
• Hidden or latent defects (manufacturer’s defects).
• Equipment intentionally afloat, submerged, or underwater (unless the Water Use endorsement is added).
• Seizure or destruction of property by order of governmental authority.
• Illegal transportation or trade.
• Illegally obtained equipment.
• Fine art repairing or restoration.
• Intentional acts or dishonesty.
• Remote-controlled aircraft while in operation.
• Drones while in operation (Drones are covered when not in operation).
• Theft from an unlocked vehicle (unless Theft From Unlocked Vehicle coverage is added).

Claim Incidents Excluded in Certain Conditions:

• Incidents occurring in countries sanctioned by the US State Department.
• Loss or damage caused by dampness, dryness, or extreme temperatures.
• Loss or damage due to negligent work.
• Nuclear hazards.
• Loss or damage caused by pollutants.
• Loss or damage due to rust, oxidation, corrosion, or discoloration.
• Loss or damage from unauthorized transfers.
• Loss or damage due to war and military action.

Conclusion

Understanding these exclusions is crucial to ensure that you have the appropriate coverage for your equipment. If you have any questions or need to adjust your policy to include additional coverage, please contact our support team.

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