What term is commonly used to refer to exclusions in an insurance policy?

The term commonly used to refer to exclusions in an insurance policy is "exemptions." These exemptions specifically identify situations, risks, or types of damage that are not covered by the policy. Understanding exemptions is crucial because they outline the boundaries of the insurer's obligations and help policyholders know what risks they remain responsible for.

In the context of insurance, deductibles refer to the amount a policyholder must pay out of pocket before the insurance coverage kicks in. Limitations are restrictions placed on the amount of coverage, rather than exclusions. Perils are the specific risks or causes of loss that an insurance policy covers, as opposed to what is excluded. Therefore, recognizing "exemptions" as the correct term reflects a solid understanding of the insurance policy's structure and the critical nature of exclusions in managing risk for policyholders.