Vermin Exclusion

A provision of a property insurance policy that states that the policy will not pay benefits to the policyholder for damage caused by pests - such as lice, fleas, roaches, bed bugs and rodents. Insurance companies commonly consider pest control to be part of ongoing maintenance, and do not view infestation as a peril to be insured against. Even if a policy does not have a vermin exclusion, the policyholder may find it difficult to prove the damage and loss caused by the vermin.

Vermin exclusions can be troublesome for property owners when the business that operates on the property is a restaurant, pet store or rental housing or other operation that is known to attract pests. Vermin will generally not limit their occupancy to the area that initially attracted them, but tend to spread throughout the entire property. Vermin are difficult and costly to get rid of and pose liability issues for the property owner.