A war exclusion clause is part of an insurance contract that states that the insurance does not cover damages caused by acts of war. A very common exclusion found in most insurance policies, it also usually includes acts of terrorisms. Life, disability, homeowner, auto, and nearly every other type of insurance often has some type of war exclusion clause.
Insurance companies do not cover damages caused by war for a couple reasons. First, if war breaks out in a country, it could cause a catastrophic amount of damage. It would likely bankrupt the insurance company to cover such damages; thus, they cannot afford to cover this risk. Moreover, if an insured individual decides to join the military and go to war, they are voluntarily putting themselves at a much higher risk of getting disabled or killed. As a result, many life and disability policies do not cover losses from war.
However, specific policies do cover war damages. For example, some insurance policies offer commercial policies to companies that have to do business in politically unstable countries. The government also provides war insurance, such as disability and life insurance, for soldiers.