Recently, there has been lots of campaign on social media for Home Insurance Policies. While this is a welcome development as the public are being encouraged to protect their most cherished possessions, many of these invitations do not detail the numerous benefits of this policy, what you should look out for when buying the policy and how you can effectively seek compensation under the policy.
As your online insurance advocacy platform, we have taken it upon ourselves to address these questions so that you are better informed.
If you have been following our discussions, you would recall that we just concluded the series on Fire Insurance Policy and the one before it was Burglary Insurance Policy. You would also recall that we advised that these two policies (Fire Insurance Policy and Burglary Insurance Policy) are not advisable for residential buildings. The reason is that they provide you with a very limited scope of cover. Home Owner insurance policy however provides an adequate protection for residential premises.
What does Homeowner Insurance Policy basically covers?
1. The building
This is the main structure and the landlord’s fixtures and fittings. The cover can be extended to include outer structures such as building extensions, gatehouse, perimeter wall fence, car ports among others. It is however important that you provide these details when buying this cover as that which is not expressly stated could be deemed as not intended.
2. The contents
This includes but not limited to household goods and personal effects. Can be extended to include goods or items held in your custody, and the personal effects of your guests while they are temporarily resident in your aboard.
3. “All Risk” cover for movable items
By movable items we mean; your laptops, mobile phones and tablets, scanners and other handy items that are not necessarily fixed in the building. You should be very emphatic about this cover when taking up the policy because by its nature, the policy provides cover for “premises risk” (loss or damage that may arise while these items are in your building alone). The “All Risk” extension would ensure that these items are also covered whenever they are outside your home but still within the geographical limit of the country.
4. Additional expenses of alternative accommodation – Where you need to seek alternative accommodation following damage to your home (such that it has become uninhabitable), the policy would provide a reasonable amount for your accommodation for the period it would require your home to be back in a habitable state.
5. Loss of rent – The policy would also compensate for loss of rent for the period the building was not occupied following a damage that rendered it unfit to live in.
6. Public liability extension
The policy will also refund any expenses incurred arising from your legal liability (either as a landlord or a tenant) to members of the public who suffered injury or loss of or damage to their properties within your premises. There are however exceptions to this which we would look into in due course.
7. Compensation for death of the insured – The policy also provides compensation to the insured’s representative for death of the insured arising from fire or burglary incident while in the premises. Provided that such death occurred within a specified time frame.
Disclaimer – The above only applies to a comprehensive Homeowner insurance policy. It is imperative to state here that not all Homeowner policies provide all these covers. Some are limited to building and or contents alone and you may have to specifically request for some of these extensions. This could be subject to payment of additional premium.
Thank you for reading. We would like to have your view and also know if this post has been of any benefit to you. Kindly leave a comment.