What is a common characteristic of exclusion clauses in insurance policies?

Exclusion clauses in insurance policies are designed to explicitly identify and outline what is not covered under the policy. This characteristic is crucial because it helps policyholders understand the limitations of their coverage and the specific scenarios or items that are excluded from protection. By clearly stating these exclusions, the insurance company can manage risk and avoid misunderstandings when a claim is made. This transparency is vital in guiding policyholders' expectations regarding their coverage, highlighting the circumstances under which the insurer will not provide benefits.

While the other aspects such as additional coverage, definitions of terms, and claims procedures are important elements of an insurance policy, they do not specifically address the restrictions placed on coverage. Thus, the focus on what is not covered is a distinguishing feature of exclusion clauses.