Ace the North Carolina Insurance Challenge 2025 – Master the Rules, Rule Your Future!

One common exclusion found in many insurance policies is wear and tear. This exclusion is significant because insurance is designed to protect against sudden and accidental losses rather than predictable and gradual deterioration of property. Wear and tear refers to the normal, expected decline in condition due to usage over time, which insurers do not cover because it is not a risk that arises suddenly or unexpectedly. Policies typically clarify that they are intended to cover unforeseen damage rather than maintenance issues or long-term degradation. This helps insurers manage their risk exposure and keeps premiums at a manageable level for policyholders.

Natural disasters, theft, and fire, on the other hand, are often covered under specific policies or endorsements, as they represent sudden events that cause significant damage or loss.