What does Home Insurance covers and what it does not?
Do you have your own house? Does it have multiple heavy duty locks, CCTV surveillance, a guard? Well, all of this would definitely go a long way in protecting your house, but mishaps still happen. Houses still robbed. And a guard or CCTV can’t protect your house from rain, fire or other natural perils. This is why you need to protect it with a home insurance too.
But before you buy a policy, review the inclusions and exclusions.
To make things easier for you, we’ve compiled a list of things that are covered and not covered by an average home insurance:
A home insurance will cover damage to or due to
1. The structure: Any damage or loss to your house, the fixtures & fittings inside, and the renovations will be covered if caused by fire, earthquake, flood etc. This also includes extended parts such as garage, drainage, and sewer too.
2. Contents of the house: The coverage also extends to the contents of your home such as valuables, appliances and jewelleries. You are also covered for the loss or damage to them during transportation.
3. Burglary: Should anyone burgle your your house your home insurance would cover you for the loss of your possessions.
4. Alternate accommodation: In the case of a loss to property, you may have to stay in other accommodation for a while. Your policy may reimburse you for such expenses.
5. Liabilities: Certain policies may also cover you for any legal or medical liability that arises out of injury to domestic employees or third party
Home insurance does not cover damage due to…
1. Negligence: Did you forget to lock your house when going out? Or failed to turn off the water heater? If you did not take reasonable measures to care for your house, the home insurance will not apply.
2. Intent: Do not expect insurance protection if you caused loss or damage to your home intentionally.
3. Wear and tear: With regular use, your house and its contents are bound to deteriorate. For example, corrosion or rusting may occur. The policy does not provide for such wear and tear.
4. Unexplained loss: Sometimes, a loss or damage may occur due to mysterious or unknown circumstances. Your policy may not cover those.
5. War: Any consequential loss or losses, destruction, damage or bodily injury due to war, invasion etc. would not be covered.
6. Nuclear and radiation loss: Damage due to ionizing radiation contamination or nuclear weapon will not be covered