Why & When considering property insurance,
Property Insurance? When considering property insurance, it’s essential to understand its purpose beyond mere coverage—it’s a safety net for unforeseen circumstances. This insurance not only safeguards your home and belongings but also provides protection for the land it sits on. Delving into its intricacies before committing is prudent.
Property insurance is multifaceted, with various add-ons catering to specific risks like earthquakes or floods. While fire and allied sections are essential, opting for additional add-ons can offer a more comprehensive cover, ensuring peace of mind.
Is Land Covered?
It’s crucial to discern what property insurance covers. Land, unfortunately, isn’t included. Therefore, solely insuring your land would prove futile. The policy extends protection solely to the dwelling itself and personal possessions, excluding land and properties under construction.
Inclusions to Note:
Examining the inclusions within a policy is vital:
- Fire: Damage resulting from fire is covered, facilitating home restoration.
- Theft and Burglary: Loss of valuable items like jewelry due to theft is reimbursed.
- Electrical Breakdown: Coverage extends to electrical appliances, aiding during breakdowns.
- Manmade Hazards and Natural Calamities: Financial security against calamities like floods or riots.
- Accidental Damage: Sanitary fittings and fixtures within the home are covered.
- Alternate Accommodation: Expenses for temporary relocation are reimbursed if the home becomes uninhabitable due to covered losses.
Exclusions to Bear in Mind:
Certain events aren’t covered by property insurance:
- War: Damage resulting from war or invasion isn’t included.
- Precious Collectibles: Losses related to items like stamps or artwork aren’t covered.
- Old Content: Items over ten years old aren’t covered.
- Wilful Misconduct: Damage caused intentionally isn’t covered.
- Consequential Loss: Losses not directly resulting from a breach in the normal course of events aren’t covered.
- Wear and Tear: Normal wear and tear isn’t covered.
- Third-Party Construction Loss: Damage due to third-party construction isn’t covered.
Careful Consideration Matters:
Reviewing the policy’s inclusions and exclusions is crucial before purchasing insurance. This diligence ensures a smoother claims process.
Disclaimer: The information provided serves for illustrative purposes only. For comprehensive details, refer to the policy wordings and prospectus before finalizing any purchase.
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