Question: Michael owns a small plane that flies on weekends. His insurance agent informs him that aircrafts are excluded as personal property under homeowner's policy. As

Michael owns a small plane that flies on weekends. His insurance agent informs him that aircrafts are excluded as personal property under homeowner's policy. As an insured, he feels that his plane should be covered just like any other personal property he owns.

Explain to Michael the rationale for excluding certain types of property, such as aircraft, under the homeowner's policy.(3 marks)

Explain two additional reasons why exclusions are present in insurance contracts.

(6 marks)

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