When a policyholder lacks coverage for specific events, such as flooding or earthquakes, what term is often used to describe this?

The term used to describe the lack of coverage for specific events within an insurance policy, such as flooding or earthquakes, is "exclusions." In insurance, exclusions refer to the specific situations, types of damage, or occurrences that are not covered by the policy. This helps define the scope of coverage and sets boundaries on what risks are insured.

By including exclusions, insurers can avoid covering high-risk events or losses that could lead to significant financial liability. It helps policyholders understand the limitations of their coverage and encourages them to consider additional options or policies to address those specific gaps in protection. Understanding exclusions is crucial for both adjusters and policyholders to ensure that expectations align with the actual coverage provided.