DEFINITION of 'Vermin Exclusion'

A provision of a property insurance policy that states that the policy will not pay benefits to the policyholder for damage caused by pests - such as lice, fleas, roaches, bed bugs and rodents. Insurance companies commonly consider pest control to be part of ongoing maintenance, and do not view infestation as a peril to be insured against. Even if a policy does not have a vermin exclusion, the policyholder may find it difficult to prove the damage and loss caused by the vermin.

BREAKING DOWN 'Vermin Exclusion'

Vermin exclusions can be troublesome for property owners when the business that operates on the property is a restaurant, pet store or rental housing or other operation that is known to attract pests. Vermin will generally not limit their occupancy to the area that initially attracted them, but tend to spread throughout the entire property. Vermin are difficult and costly to get rid of and pose liability issues for the property owner.

RELATED TERMS
  1. Broad Form Property Damage Endorsement

    An addition to a general liability policy. A broad form property ...
  2. Experience Refund

    The portion of an insurance company’s premiums or profits that ...
  3. Use and Occupancy Insurance – U&O

    A type of insurance that covers against the loss of use of machinery ...
  4. Property Insurance

    A policy that provides financial reimbursement to the owner or ...
  5. Total Insurable Value

    Total insurable value is the value of property, inventory, equipment, ...
  6. Assessable Policy

    A type of insurance policy that may require the policyholder ...
Related Articles
  1. Insurance

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  2. Insurance

    How To Invest In Insurance Companies

    Knowing the special circumstances that insurance companies operate under helps in evaluating whether or not a listed insurance company is a good investment and whether the economic environment ...
  3. Financial Advisor

    Mutual Vs. Publically Traded Insurance Companies

    Should you buy your insurance policy from a mutual or publically traded insurance company?
  4. Insurance

    Dividend-Paying Whole Life Insurance: What to Know

    Many whole life insurance policies pay dividends. Here are what policyholders need to consider.
  5. Investing

    Investing in Property Out of State

    If you can't afford property close to home, consider taking the real estate plunge elsewhere in the country.
  6. Insurance

    A Quick Guide To Landlord Insurance

    ...And why landlords need it, even if they also have homeowners insurance.
  7. Insurance

    Is Loan Protection Insurance Right For You?

    This coverage can keep you from defaulting on your loans when you're in financial trouble.
RELATED FAQS
  1. What's the difference between Porter's 5 forces and PEST analysis?

    Learn the key differences between Porter's five forces and PEST analysis. Understand the objectives of each analysis and ... Read Answer >>
  2. Can your insurance company cancel your policy without notice?

    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
  3. Why would you want a monthly benefit versus a daily benefit?

    An insurance benefit is the amount of money paid to or on behalf of the policyholder. Depending on what kind of insurance ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  5. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  6. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
Trading Center