In the world of insurance, home insurance policies are often one of the most comprehensive ones. Typically, a home insurance policy will provide all-round protection which covers you, your house, your family members and also any liability which may arise. The case may not be so with other types of policies like auto insurance policies which only cover third party liability and damages relating to automobiles. Home insurance, on the other hand, provides cover which extends beyond just the structure of the house. The most important features of a home insurance policy may be categorized into two parts, based on the kind of cover they provide. These are (i) Cover for Damages and (ii) Cover for Liabilities. Read on to find out more about each of these features which form a part of a homeowner insurance policy:
Cover for Damages – The major / basic component of any home insurance policy is the cover it provides against a variety of damages. Home insurance policies typically insure not only your house but any surrounding structures, your personal property or possessions, as well as cover for any alternate accommodation arrangements you might have to make.
Coverage of Additional Structures – In addition to providing coverage to the structure of the house itself, an insurance policy will also provide cover to any additional structures surrounding the house which may not be attached to the house. Some examples of the non-attached structures covered under a home insurance policy include detached garages, fence surrounding the house, a backyard shed, a retaining wall, the driveway, mailbox, pool etc.
Cover for Personal Possessions / Property – A home insurance policy also covers your personal property or the contents of your house against a variety of risks. The personal property cover usually includes electrical appliances like television sets, personal computers, microwaves, refrigerators, air-conditioners, etc. It also includes furniture like beds, couches, dining tables, along with furnishings like curtains, rugs etc. Often, expensive assets like jewellery are also included under the personal property cover of home insurance policy. However, when it comes to personal property cover, most insurance companies have specified limits for different items of personal possession.
Cover for Alternate / Additional Accommodation – Another important feature of a home insurance policy is the Loss of Use cover or cover for Alternate / Additional accommodation expenses. The objective of this cover is to reimburse the policy holder / home owner for all living expenses which they might incur, in case the insured house is damaged or destroyed by an insured cause. The expenses covered under this section typically include additional rent, travel, food and any other living expenses which might be borne by the home owner towards their alternate living arrangements. Do remember to keep all the receipts of any expenses incurred during such a period of temporary living arrangement for insurance purposes.
In our next article under this series, we review how to choose the right property insurance for your property and available products to choose from.
About The Author:
Henry S. Tembo is an Insurance Expert, Author, and a Business Development Manager at A-Plus General Insurance Limited, a leading insurance company in Zambia. He is also the Vice Honorary Treasurer of The Insurance Institute of Zambia. Contacts: henry.tembo@aplusgeneral.co.zm | +260 966 765207
