Which type of insurance specifically excludes coverage for acts of war?

Property insurance is specifically designed to protect against loss or damage to physical assets like homes and businesses. However, most property insurance policies contain clauses that exclude coverage for losses resulting from acts of war. This is a significant consideration for policyholders, as war can lead to widespread destruction and large-scale losses that insurers typically do not want to cover.

Including this exclusion helps insurance companies manage their risk and financial exposure, as the costs associated with war-related damages can be extraordinarily high and unpredictable. The presence of such exclusions can significantly influence a property owner's decision when selecting an insurance policy and understanding the extent of their coverage.