Michael owns a small plane that he flies on weekends. His insurance agent informs him that aircraft

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Michael owns a small plane that he flies on weekends.
His insurance agent informs him that aircraft are excluded as personal property under his homeowners policy. As an insured, he feels that his plane should be covered just like any other personal property he owns.
a. Explain to Michael the rationale for excluding certain types of property, such as aircraft, under the homeowners policy.
b. Explain some additional reasons why exclusions are present in insurance contracts.

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Principles of Risk Management and Insurance

ISBN: 978-0132992916

12th edition

Authors: George E. Rejda, Michael McNamara

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