Exclusions In Home Insurance

Natural or artificial calamities such floods or fire can cause extensive damage to your home which you bought with your hard earned money.

To protect against these contingencies, one must buy home insurance. If you are planning on getting an insurance yourself, you must keep in mind that you get the best policy under affordable rates. For this, do  a comparative & thorough research and then choose one that suits your requirements. However, you must keep in mind that not even the best companies provide insurance against all types of damages. We’ve listed a few common exclusions in home insurance below for your understanding.

Exclusions in Home Insurance Policy

There are various kinds of exclusions under home insurance policies. It largely depends on the company providing the policy. We’ve listed down the most common ones below:

1. Ground movement such as an Earth or a Land slide

Earthquakes, sinkholes or other general ground moving phenomena induced damage is generally not covered under home insurance policy. However at select places it is allowed, where insurers specifically offer optional protection. Apart from this, you’ll have to take separate coverage for specific disasters, which your insurer will help you find. For example, a different policy altogether can cover earthquakes, landslides, and other risks, such as mudflows and floods.

2. Damage caused intentionally

Home insurance policies do not cover any intentional damage or loss caused by you or any of your family member. This implies that if your rebellious teenager spray paints your house, insurance company won’t pay to return the home to its less-cool color.  The same goes for if you or a family member causes intentional damage or injury to someone else. The personal liability section of your policy covers certain  legal and medical expenses due to accidental damage caused, but not if you intended to cause it.

3. Aggressive or unfriendly dogs or pets

Although homeowners insurance typically covers medical and legal expenses arising of dog bites, dogs with a history of biting and certain dog breeds may be generally excluded from your policy’s liability coverage. However, you can find various dog-friendly insurance companies that will ensure your pet.

4. Insect or termite Infestations

Bedbugs, mice, termites etc are typically excluded from home insurance policies. From insurer’s point of viev, ridding your place of infestations and fixing the damage left behind are part of maintaining your home. However, consequential damage may be covered, for example: A mouse bites through a wire causing short circuit & an electric fir. .

5. Poor maintenance or negligence

In home insurance, this refers to negligence towards any foreseeable damaged. In other words, wear and tear, preventable leaks, and lack of routine maintenance issues are generally not covered under homeowners insurance.  For example, a water supply pipe that leaks over the course of weeks or months and causes the furniture to rot. When its time to claim, your insurer would likely cite neglect as an exclusion to deny it.

6. Nuclear hazards

Home insurance policies dont provide coverage for nuclear accidents. It’s a bit irrelevant as most people wont need it. However, nuclear power companies need to provide their liability insurance to cover losses if you live within the affected area of a hazard.

7. War or Government action

Damage caused due to ongoing war, including government declared, undeclared war, civil war, nuclear war, or an anarchist insurrection on the nation’s capital, isn’t covered under your home insurance policy. Similarly, if a public authority damages or destroys your house or it’s  belongings, the home insurance policy will not pay to replace it.

Lastly!

While buying a home insurance policy, you must carefully read all the terms & conditions. Needless to say that your home insurance cover needs to be reviewed periodically to ensure that your home insurance value is appropriate. The value of your property keeps on increasing with time, and so does the cost of constructing it.

If you do not review your cover timely and increase/decrease it accordingly, you will be putting yourself at big risk.  If you see any coverage gaps, talk to your home insurer. You may include add-ons that will cost extra but will satisfy your requirements and potentially save a  significant amount of out-of-pocket expenses.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.