3 Important Home Insurance Coverage

Home Insurance is a type of insurance that offers coverage for different risks that a homeowner will face. The insurance policy offers an affordable way to get coverage against various natural or manmade losses and damages. You can read more about Home Insurance here.

If you want to know what a Home Insurance policy covers, then this is a handy guide for you.

Here are the 3 different types of coverages offered by Home Insurance:

  • Fire or Peril:

    This covers a range of risks that may cause loss or damage to the structure of the building. These risks are:
  • Fire
  • Malicious damage
  • Explosion/Implosion
  • Earthquake
  • Lightning
  • Storm
  • Cyclone
  • Tornado or hurricane
  • Floods
  • Strike
  • Riot
  • Impact Damage
  • Missile Testing
  • Aircraft damage
  • Landslide or rockslide
  • Inundation
  • Leakage from sprinklers
  • Bursting and overflowing of tanks

The coverage offered by each insurance policy is more or less the same. Most of these risks are covered. However, there are a few exclusions to the risks mentioned above.

This part of the Home Insurance policy only covers damage or losses to the structure of the home and not the land.

  • Burglary or Theft:

    This part of the Home Insurance policy covers loss or damage to the contents of the house due to an actual or attempted burglary. It covers listed items insured as a part of the policy. There are a few exclusions to this policy. Any actual or attempted theft by the insured’s domestic help or any actual or attempted theft where the domestic help has some role is not covered in this. Also, items like cash, bullion, works of art, mobile phones are not considered for the purpose of this policy.

    The value of the contents of the house depends on the resale or replacement value of the items.

    There is an additional cover that can be opted for in this policy: rent for alternate accommodation. Some policies offer an add on cover that provides rent up to a particular limit in case the insured has to shift his place of accommodation due to the risk of burglary.
  • Terrorism:

    Most of the times, this is offered as an extra additional cover. Most policies exclude losses due to war or terrorism unless specifically included.

The best way to get an adequate Home Insurance cover is to check what the Home Insurance policy covers. That way, you can get all items of your house insured at the correct values and be safe and insured.

Looking to apply for Home Insurance? Click here to get started!

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.