The insurance market is full of competition between companies, which is shown through the premiums they charge and the cover they offer. It is because of this competition that your home insurance may cover things that you didn’t know about. However, even though some things have become part of the standard cover, other things are not automatically covered by your home insurance.
Here is a look at what your home insurance may offer as part of their standard cover and some things that won’t be automatically covered.
Did You Know Your Home Insurance Covers These?
Liability for Injury
Did you know that if a person is injured on your property, whether its inside or outside your home, they can hold you liable for the damages? Well, the good news is that your insurance company may actually cover the medical and legal fees that are involved in these claims. The same is true if your pet is to cause someone injury.
Injury to Your Pet
This may come as a surprise, but if your pet is involved in a fight with a neighbour’s dog or if your neighbour causes injury to your pet via their car, then your home insurance policy may actually cover the veterinary bills associated with these injuries or accidents. Of course, though, your home insurance will not cover any shot, sterilization or illness.
Your Food Goes Off
A benefit that has been added by insurance companies is the cover to your food and groceries due to load shedding and power outages. If your food becomes spoilt due to the lack of power then the insurer will pay out the value so that you are able to replace these items.
Has Your Money Been Stolen?
This will depend on your insurance company, but quite a few are now covering stolen money, in whatever form it might be. This means that the insurer may pay out if credit cards, cheques, money guarantees and even deeds and other assets are stolen. You should check if your home insurance covers this.
Having Guests Over?
If you have guests stay over often, then you should check to see if your household contents insurance policy covers the theft or damage to your guest’s belongings like their clothes and other property. Adding this to your insurance policy can be worthwhile if you have guests over regularly as the insurance company will pay out, up to a certain amount.
Now.. let’s take a look at what your home insurance doesn’t automatically cover
Did You Know Your Home Insurance May Not Automatically Cover These?
Damage Caused by Flood
It might be surprising, but actually, most home insurance policies do not cover for flood damage. You may find that you have to add this onto your policy and it could be a vital add on if you live near water or below the flood line, but it pays for every homeowner to have this.
Same Value Replacement
You will find that most of your assets will only be insured for the replacement that is the cost it would be to replace the lost item with one of the same value. For instance, a tablet that you paid R10 000 for might only be worth R5000 in a few years, this means that the insurance value will only be R5000. Home insurance does not always include a replacement value that covers the cost and it must, otherwise, you may find that you are underinsured.
Mouldy Home and Pesky Insects
A homeowner might be under the impression that they are able to claim for damage that is caused by termites or mould, but then find out that the insurance company doesn’t cover this damage. This is because pests and moulds are seen as a maintenance issue and failing to maintain your home can mean that your insurance claim is rejected.
It’s All Gone
It is a mistake to think that the insurance company will reimburse you for your total household contents should your entire home be lost due to an accident like fire. A home insurance policy will only cover the structure of the home and surrounding buildings, whereas a home contents insurance policy will cover the contents, even in the event of total loss.
You Can’t Live There Anymore
If your home suffers damages and the repairs mean that you are not able to live in your home, your home insurance company may put you in a hotel or alternative accommodation, only if this is stipulated in your policy. You should not assume that your policy includes this benefit.
As you can see, it is vital that you go through your home insurance policy and ensure that you understand what is and what isn’t covered. You do not want to find that you are underinsured and are not able to claim for certain things. Read the benefits of your policy and find out about any optional cover that you can include. You shouldn’t sign your contract until you know what it is you are getting and make sure that it includes the above.