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House Holders Insurance Exclusions

Coverage for natural wear and tear

If you read carefully, insurance companies specifically state that they will not pay for damages caused due to regular wear and tear. Read to know more about coverage.

 

Even if you have purchased the mechanical and electrical breakdown section, the insurance company is not liable to pay for the damages. If you read carefully, insurance companies specifically state that they will not pay for damages caused due to regular wear and tear. The company is liable to pay only for losses or damages arising out of accidental electrical or mechanical breakdown. It will not cover items that are more than 7 to 10 years old and nor will it cover for acts considered willful or due to negligence on your part or the supplier or manufacturer.

 

Covering a house and its contents

Know about the house-holders insurance, cover of the house and its contents.
 
 

 

House

Your house insured as per the reinstatement value i.e. the value of your house if it had to be re-constructed at the current construction rate per square foot, and NOT the market value of your home.

The householders' insurance policy provides for damage to the building against fire and allied perils due to:

  • Natural calamities, such as fire, lightning, earthquake, landslide, rockslide, flood, inundation, storm, tempest, typhoon, hurricane, tornado, or cyclone

  • Man-made calamities, such as domestic gas explosions, overflow and bursting of water tank or pipes, damage caused by aircrafts, riots, strikes, malicious or terrorist acts
  •  
  • Additional risk covers provide for:
  • Terrorism cover
  • Debris removal cost
  • Costs to comply with building regulations following damage
  • Professional fees towards architects, surveyors, etc. for superintending a building during rebuilding
  • Cost of moving contents of your home to a temporary residence
  • Increase in sum insured throughout the year to guard against inflation
  • Automatic increase in sum insured for a period of 15 days before and after wedding of any of your family member
  • Loss of rent for landlord
  • Additional rent expenses for tenant
  • Exclusions

insurance companies are selective about the risk covers they offer - for example, some may charge an additional price for cover against terrorist activities. Or, they could have deductibles in the insurance plan that expects the client to pay a portion of the claim amount for damage or loss due to natural calamities.

 
 

Contents of the House

The contents of your home are insured as per their market value i.e. the cost of buying a similar new item after deducting appropriate depreciation, based on the age of the item.

The householder's insurance policy is quite comprehensive and a few companies provide cover for all of the following risks:

  • Fire & allied Perils
  • Burglary & housebreaking
  • All risks (jewelry & valuables)
  • Plate glass
  • Breakdown of domestic appliances
  • Breakdown of electronic equipment
  • Pedal cycle
  • Baggage
  • Personal Accident
  • Public Liability Risk and Workmen's Compensation Risk
  • Increased Living Expenses

Most insurance companies have made it mandatory for one to purchase at least two to five sections of the householders' insurance policy - along with the Fire and Allied Perils section being compulsory.

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