What are provisions written in an insurance contract that limit coverage for certain conditions called?

The correct term for provisions in an insurance contract that limit coverage for specific conditions is "exclusions." Exclusions are essential components of an insurance policy, as they define what is not covered under the policy. These provisions help insurers manage risk by clearly outlining certain scenarios, events, or conditions that will not be compensated or covered, thereby providing a clearer understanding for both the insurer and the insured regarding the limits of the policy.

For instance, a typical homeowner's insurance policy may include exclusions for damages caused by floods or earthquakes, meaning that if those specific events occur, the insurer will not pay for the related claims. This enables insurers to control their risk exposure and helps policyholders to know which risks they may still need to insure against with separate policies.

Other options, like endorsements, refer to modifications or additions to the existing policy that can either add coverage or change the terms, while liabilities pertain to the legal responsibilities that an individual or entity holds, usually connected to financial obligations. Coverage limits represent the maximum amount the insurer will pay for a covered loss but do not specify exclusions. Thus, exclusions are the right choice for limiting coverage regarding particular conditions in an insurance contract.