Are you planning to buy home insurance for your property? If so, it’s time for you to understand the ins and outs of home insurance to make a wise decision. To put it simply, a home insurance policy protects you from the risks of damage or loss that might happen to your house or its contents because of unexpected events like natural disasters, fires, or thefts. Furthermore, this kind of protection is important because your home is one of your most valuable possessions, and it takes a lot of money and effort to build your dream house and fill it with valuable items.
Many people in India mistakenly believe that once they purchase a new home insurance policy, they are completely covered and no further actions are needed. However, while a basic home insurance policy does offer protection for several common types of damage or loss, it does not cover every possible situation.
In this post, we’ll discuss the possible inclusions and exclusions under the home insurance policy.
Primary Inclusions Under Home Insurance
Here are the things included under the home insurance policy.
- Your Home Structure
One of the biggest inclusions under a home insurance policy is that it covers the structure of your home. If your home’s structure is damaged by events like fire, storms, or earthquakes, your insurance provider will compensate you for the repairs or rebuilding costs. Furthermore, it covers the construction of your house, including the walls, roof, and other fixed components.
- Personal Belongings
Another major aspect included under the home insurance policy is that it covers the personal belongings of your home. The contents of your home, such as furniture, clothes, and appliances, are usually covered if they are damaged or lost due to an insured event like fire or theft. However, valuable items like jewellery, expensive electronics, and antiques may not be fully covered under a standard policy.
- Public Liability
One of the major inclusions under property insurance is that it protects you if someone else, like a visitor or neighbour, gets injured or suffers property damage due to an accident on your property. The insurance will cover the costs if you are legally required to compensate them for their injuries or losses.
- Additional Living Expenses
Last but not least, if your home is damaged and you cannot live there while it is being repaired or rebuilt, the insurance will cover the extra costs of living somewhere else temporarily. Furthermore, it may include hotel bills, meals, and other expenses above your normal living costs. Also, if you were renting out a part of your home, the insurance might also cover the rental income you lose while your house is uninhabitable.
Key Exclusions Under Home Insurance
Here is a list of the things excluded under the home insurance policy.
- Damage Due to Lack of Maintenance
One of the major exclusions under the home insurance policy is that many standard home insurance policies do not cover damages covered by poor maintenance or neglect, such as pet infestations, mould from ongoing moisture issues, or gradual wear and tear. If mould occurs due to an insured event like a burst pipe, you are required to take steps to prevent further damage, such as using air conditioners or dehumidifiers. For mould caused by moisture from everyday activities, like in bathrooms, regular cleaning and maintenance like using mold-killers and keeping areas dry, are necessary to avoid these issues.
- Floods
Another major thing excluded under the home insurance policy is that flood-related damages are not typically covered by standard home insurance policies. If your home is in an area prone to floods, you may need to purchase a separate flood insurance policy to cover any damage caused by flooding.
- Earth Movements
One of the major exclusions under the home insurance policy is damage from natural earth movements like landslides, earthquakes, and sinkholes. However, you can buy separate policies or add-ons to cover these events. Furthermore, you need to evaluate whether your location is vulnerable to these risks before opting for such coverage.
- Canine Attacks
If you own certain breeds of dogs that are considered aggressive such as Pit Bulls or German Shepherds, your home insurance may not cover damages or injuries caused by them. However, some insurers may provide coverage for dog bites, but it’s usually limited to a certain amount. If a claim exceeds your policy’s liability limit, you will be responsible for covering the rest.
- Sewer Backups
Another major thing not included under the home insurance plan is damage caused by sewer backups, like overflowing or blocked sewer lines, which is not typically covered under a standard home insurance policy. It is no secret that sewer backups can occur due to issues like old sewage systems, tree roots growing into pipes, or blockages in the sanitary main. Furthermore, you can buy an additional policy or add-on to cover these types of incidents.
- Expensive Jewellery
Last but not least, while home insurance usually covers personal belongings, there is generally a limit on high-value items like expensive jewellery. These items are at greater risk of being stolen, so insurers may cap the amount they cover. If you own valuable jewellery, you may need to purchase additional coverage to fully protect it.
Final Thoughts
So, there you have it! That’s a wrap to the common inclusions and exclusions under the home insurance policy! There is no denying that owning a home is a major responsibility and it is important to protect it from all potential risks. Before purchasing a home insurance policy online, take the time to find the best insurance plans, compare what insurance companies offer, and choose a policy that perfectly suits both your home’s structure and budget. Make sure you compare home insurance options and find comprehensive coverage that gives you peace of mind for your valuable investment.
