Losses Covered under Home Insurance
Feb 18, 2019 Legal Guidance
Most often when taking the home insurance, the insurers assure us that they will help in the time of need. For instance, under any unfortunate circumstance you house caught fire, and now you want the insurance company to pay for the damages. The insurance company can refuse to pay for it claiming the particular accident was not covered in the clause when you very well knew that your house was insured in case of a fire accident. This nulls the entire idea of buying insurance.
Some clauses restrict that does not cater to the losses under certain circumstances. One should be aware of what is covered and what is not under insurance.
We discuss them below:
Some clauses restrict that does not cater to the losses under certain circumstances. One should be aware of what is covered and what is not under insurance.
We discuss them below:
Losses that are included
The losses that are man-made are covered under the insurance. Damage to the structure or loss of personal belongings is covered under the insurance. The man made losses can be fire, aircraft damage, missile testing, strike etc. the natural disasters like flood, earthquake, cyclone, lightning etc. are not covered by the insurance.
Though the insurance against earthquake and natural tragedies are not covered in the insurance, you will have to pick the particular insurance policy. Similarly, in case of burglary, to claim the insurance, the objects and belongings must be insured.
Though the insurance against earthquake and natural tragedies are not covered in the insurance, you will have to pick the particular insurance policy. Similarly, in case of burglary, to claim the insurance, the objects and belongings must be insured.
Losses that are not covered
- Even though once can claim for man-made disasters, but one thing to note is that not everything is covered under it.
- Through the years, your house will undergo structural decay and depreciation. One cannot claim insurance for the same.
- The insurance companies do not provide the insurance in case any of the electrical objects was over run, or the fire broke out because of the overheating of the electrical equipment.
- If you have bought the cover against theft, one thing to remember is that the loss of cash is not included in it.
- If your property has incurred damages due to war in your country with the foreign country, then one cannot claim insurance for the same.
One of the most important things to remember when buying home insurance is that the insurance will not cover the entire property including the land. The insurance will only cover the building cost of the home. The cost of the land, the building, the locality is generally excluded from the insurance.
Before buying the insurance, it is advised to go through the terms and conditions attached to the same. The terms may be difficult to understand, it is better to understand it from the lawyer or who understand the terms used in the document.
Before buying the insurance, it is advised to go through the terms and conditions attached to the same. The terms may be difficult to understand, it is better to understand it from the lawyer or who understand the terms used in the document.
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