Pollution Exclusion
Definition:
A standard policy clause that excludes coverage for damage caused by pollutants.
Explanation:
Pollutants may include smoke, chemicals, fumes, or biological contaminants. Special endorsements or environmental insurance may be required for coverage.
Example:
If an oil tank leaks and contaminates your soil, the pollution exclusion may prevent your policy from covering cleanup costs.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.