Michael owns a small plane that he flies on weekends. his insurance agent informs him that aircraft are excluded as personal property under his homeowner's policy. as an insured, he feels that his plane should be covered just like any other personal property he owns. explain the rationale for excluding certain types of property, such as aircraft, under the homeowner's policy.

Certain types of property are generally excluded from homeowner's policies because there are not needed by the typical homeowner (most people don't own a plane) and including those risks in the policy would unfairly increase premiums for the pool of the rest of policy holders who do not own planes/need that protection. Also, there are other types of insurance that cover specific types of property such as cars, equipment, and air planes.  

reducing the scale of the market for a new product.