An insured property covers costs and damage to your home or other insured property with home insurance. It is one of several kinds of general insurance products.
Home Insurance – Exclusions and Covers
A home insurance is also known as homeowner’s insurance. It covers your home or apartment against potential hazards. You can claim for damages due to any unfortunate event, such as fire, flood, or hail.
Home insurance can be claimed for damage due to the following reasons:
- A natural disaster such as a windstorm, hail, fire, or lightning can occur.
- Civil disturbances or disturbances man-made like riots, theft, vandalism, or property damage due to any civil disturbance
- Rail or road construction damage is taken into account.
- An encounter with an airplane or other vehicle (not your own) is what you face.
- Explosion or smoke
The coverage provided by a Home Insurance Policy.
Home insurance policies cover a range of damages. For example, electric lines or water pipelines may be damaged. There is also coverage for broken windows, doors, floors, and walls.
The amount of coverage varies from house to house, but it covers the loss and damage to the house’s contents, as well as those electrical lines or water pipelines.
The insured property may consist of any number of items, including houses.
- Interior damage costs
- Exterior damage expenses
- Personal property (e.g. household items) may be damaged or lost when a house is declared a fire hazard.
- Physical injuries that may occur while on the damaged property may be covered by insurance.
Home insurance policies may differ in what coverage they offer based on certain factors. The type of residence (rented/owned) and size determine whether or not they provide coverage.
Other factors such as age, location of residence, replacement value, and belongings include. Your claim history or criminal record in the area may also be important.
It is possible to select a coverage level that matches your needs. You have the control over the amount of premium and the deductible you are willing to pay.
The deductible is the amount you have to pay before making the claim if the premium amount falls short of. When the deductible is high, the premium is reduced and the opposite is true.
Although home insurance covers both natural and man-made causes, there are few accidents that go unattended. For example, there is no coverage for intentional damages, neglect, war situations, or ‘Acts of God’.
These are listed as exclusions.
- A home insurance policy excludes ‘acts of God’ like floods and earthquakes. Certain providers may offer additional coverages for these catastrophes in specific circumstances or customized policies
- A property that is damaged due to low or zero maintenance and neglect is an example of damage.
- Damage to a home due to termites, rodents, birds, rot, mold, or water damage is covered by the house’s warranty.***END
- Although there can be cover for fire and smoke in some circumstances, it doesn’t cover up smoke arising from industrial or agricultural operations.
- A home insurance policy cannot cover injuries sustained due to intentional or accidental damage to a home member. For example, a collision with one’s own vehicle would not be covered under a home insurance policy
- Destruction to property through Ordinance of Law or court’s order is forbidden.
- A nuclear accident or war in the country could damage it very much.
- Top 10 Benefits of Homeowners Insurance
Why should you get a Home Insurance Policy – Benefits?
You should own a home insurance policy because it covers financial loss. Even if you do not control the conditions, you may still have to bear the financial, as well as the physical, consequences of the accident.
A home insurance policy can provide you with the following benefits:
- No matter what unfortunate events happen, you can receive monetary aid for repair and damage control thanks to the laws governing expenses.
- You can still claim insurance if a third party damages your property if the damage was caused by a third party and you didn’t get into a legal fight over it.
- If there is property insurance on the home, it is easier to get a mortgage (home loan) for repair/reconstruction/expansion.
- The amount of money it would cost me to lose my home’s possessions and content is also covered up. For instance, appliances, furnishings, furniture, gadgets, or jewellery.
- Accidents or catastrophes may result in additional damages because of theft, robbery, or burglary, but not only for accidents or catastrophes but also for theft, robbery, or burglary.
- There are types of home insurance policies that cater to specific needs. These policies include Landlord’s Insurance or Tenant insurance. The landlord may claim the landlord’s or tenant’s insurance when a public liability damages their property. Rent loss (or other reasons) will also result in the tenant being insured. It is also possible for a tenant to obtain landlord or tenant insurance for their own belongings in a rented home.
How to Claim Home Insurance?
To claim home insurance money, you must have documents and evidence for the damage, such as police FIR/investigation report and statements from fire brigades/authorized organizations/residential societies.
You may also need medical officer’s certificate of death or disability if required. Apart from that, you may have court summons, repair estimates, invoice/proof of owned contents, etc.
The deductible for home insurance must be paid. You will receive a dependent on the type of policy you have. In some cases, the coverage will be based on the actual cash value or the replacement value.
It is explained in more detail below:
- The present value of a house/household item is based on the actual cash value. It subtracts the depreciation from the cost of the item when it was new to compute the item’s present value. The loss of value of an item/property as it ages is known as depreciation.
- The item/property may be insured and the insurance provider may use different methods for calculating depreciation.
A television set is insured and is stolen/damaged due to robbery. The insurance amount will be the coverage of the cost of the TV based on its reduced value at the time of the claim.
- The amount of the replacement value coverage will be equal to the actual cost of the damaged property or an item.
Assume that the damaged/lost television set is 3 years old and has coverage as per its replacement value. The insurance amount can be claimed as the cost of the TV set at the time of its purchase.
The insurer should cover the cost of purchasing/replacing with a new television set of similar quality in place of the lost/damaged one.
Wrapping it up:
Having a home insurance policy is a must in today’s unprecedented times. You need to be sure that your property is protected against unforeseen damage and related expenses. It is critical to check what expenses are reimbursed and what exclusions are in place before selecting an insurance company.
You may share the expenses of repairing your repairs to reduce the premium, for example. If you have insurance from more than one insurer, they will compensate on a proportionate basis if you experience loss.
You cannot rent an insured property if you sell your property, however, the home insurance policy is automatically cancelled if you sell the house.
Can I make a home insurance claim on a partially destroyed house?
You may apply for home insurance claim on a partially damaged house.
Can I raise the insurance amount for a home insurance policy later on?
Can I raise the insurance level on an existing home insurance policy later on?
Which insurance policy provider is best?
You may purchase a home insurance policy from any of the designated banks or insurance providers of your choice. The choice of an insurance provider is not compulsory.