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5 Things Your Home Insurance Doesn’t Automatically Cover

Your Home Insurance May Not Cover These Things

Despite what the advert says, your home insurance policy might not be comprehensive. That’s also why it’s cheaper than other insurance policies. Many home insurance policies, especially those available through direct insurance providers, do not cover all the perils that you think they should. Check your home insurance policy to see if these are included. Here are 5 things your home insurance doesn’t automatically cover.

1. Flood Damage

Most home insurance policies do not automatically include flood damage. While this is more crucial for those who live below the flood line and those who live near open bodies of water, it is important for all homeowners, especially considering freak weather patterns of late.

2. Replacement Value

Most assets are insured for the replacement, that is the cost to replace a lost item with one of the same value. A computer purchased for R10,000, may only be worth R5,000 after a few years. The insurance value will be for R5,000. Home insurance, on the other hand, does not often include a replacement value which covers the cost to rebuild. It must, otherwise you may find yourself underinsured.

3. Insects and Mould

A homeowner may think he has a right to claim for damage caused by mould and termites, for example, only to see his insurance company pull a Niccolò Machiavelli. The insurance company considers pest and mold control to be a maintenance issue. Failing to maintain your home is grounds for repudiating claims.

4. Total Loss Cover for Your Home Contents

It is a fallacy that the insurance company will reimburse you for all your household contents should your entire home be lost in an accident, such as a fire or explosion. A home insurance policy only covers the structure of the home and surrounding buildings. A home contents insurance policy covers the contents, even in the event of total loss.

5. Loss-of-Use Coverage

If your home suffers damage and the repairs make the home uninhabitable, your home insurance company may put you up in a hotel or other accommodation, only if it is stipulated in the policy. Do not assume that your policy includes this benefit.

Direct insurance companies give insureds the option to read through their policy documents within seven days of opting into it before it becomes an official contract. Make sure it includes the above clauses.

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