Taking out a home insurance cover is not a license that you will get reimbursement for all ills that befall you. There are certain restrictions and you will do well to discuss every detail with your agent before signing on the dotted line. An example will clear the air to a certain extent. If your insurance covers jewellery from theft and burglary, it is by no means unlimited. There is a sub-ceiling based on the overall coverage. Anything above that requires additional premium and insurance.
Similarly, basic home insurance do not cover a host of things. These include damage caused due to earthquakes, routine wear and tear and maintenance of old electrical and mechanical equipment. Hence, say you have an old unit for air conditioning in Berwick. It will be in your interest to have it checked periodically by professional air conditioning contractors. If you do want to include them, take a higher cover limit.
This is the darker side of home insurance, what you will NOT get on a cover. But you will be surprised to know what insurance DOES cover. Take a look.
- When you cover your home and household goods, the property of your family members are also covered. Based on the main policy, it covers possession of those in the immediate family who are living away. If your children are living on campus in school or college, their possessions are also included under the policy taken out by the parents. This is generally known as personal property coverage and comes without any additional charges. The catch here is that it does not take into consideration those living off campus in rented accommodation.
- Damage to property that is caused by weight of accumulated snow or frozen burst pipes are naturally covered. But what most people do not know is that if a house is not fit to be lived in after the effects of a severe storm or blizzard, the insurance company will pay for hotel and restaurant expenses till the climate improves and repairs are carried out. If there is damage to your equipment for air conditioning in Dandenong, get it repaired before you move back in. But there are certain restrictions on the amount reimbursable and you should check with your insurance agent regarding this.
- What happens if a falling object or parts of a defunct satellite fall on your home and damage the structure and possessions? Even if the chance of it happening is perhaps one in a zillion, home insurance covers this possibility too.
- Homeowners insurance is not limited to damage of property or possessions only, it goes beyond that too. It is basically a general liability policy and covers a wide range of activities which may or may not include a person’s home. One reputed personal injury attorney has written in her blog that she got damages for her client when a homeowner’s insurance policy holder accidently drove her bicycle against the client and injured her. Surprising, but worth keeping in mind.
- An advantage of homeowner’s insurance is that it typically covers events when the holder is sued for a wide range of claims including charges of personal slander or libel for oral or written material. This is often stretched to the extreme. The policy provides liability coverage in case of dog bites at no additional cost. The standard limit is between $100,000 and $300,000 and that means savings for you if you are ever hit with a dog bite claim.
Surprising facts, but true! Next time you take a homeowner’s insurance policy, discuss these points in detail with your agent.