Which level of coverage typically has the most exclusions?

The basic form of homeowners insurance coverage typically has the most exclusions because it provides the limited type of protection that only covers specific perils explicitly listed in the policy. This form mainly covers perils such as fire, lightning, windstorm, and theft, among a few others, and excludes a wide range of potential damages that other, more comprehensive forms may cover.

By design, the basic form is more affordable since it offers minimal protection and fewer benefits. As a result, policyholders are left at greater risk for damages caused by unlisted perils, as opposed to broader or comprehensive forms that cover a wider array of risks. This limited coverage structure means that if a loss occurs due to a peril not specified in the policy, there will be no compensation for that loss, leading to a higher number of exclusions compared to more extensive coverage options.