The war exclusion clause in the insurance policy excludes insurance coverage for damages related to war or similar acts.
The insurance company is protected from having to pay claims for cars, houses, etc., if the damage was caused by the war.
The reason insurance policies contain war clauses is because insurance companies cannot accurately calculate insurance premiums for damage caused by war.
Insurance companies also don’t cover war damage because the cost of claims could potentially be astronomical, which could lead the company to bankruptcy.
War exclusion clauses were expanded and became standard after the 9/11 attacks.