What does your Insurance policy cover? Tragic events in the past few years highlight the need to protect your assets and possessions against potential disaster. But simply holding an insurance policy is not enough: you need to know exactly what the policy covers and, more importantly, what it doesn’t.
Defined events cover: The insurer will list the events that they will provide cover for, typically these include Fire, Storm, Burglary, Impact, Glass Breakage, Earthquake, Malicious Damage, and Lightning. If it is not listed then it is not covered.
Accidental Damage cover: Rather than specifying the events covered, it works by covering accidental loss or damage unless it is excluded. Some policies include loss or damage to your contents occurring away from your home.
Sum Insured: Unless you have your insurer’s specific agreement to exclude some of your possessions, the sum insured should include everything you own. It is your responsibility to get the sum insured right.
Home Contents: Do a review of what you’ve got in each room and what it would cost to replace. Keep a list of the dates of purchase, keep receipts and take photographs.
Terminology: As highlighted by recent events involving flood waters, some insurers were able to refuse claims based on the wording in their policies. Insurers are bound by the General Insurance Code of Practice to make their wordings as unambiguous as possible.
Sub limits: Limits apply to specific items covered under a policy, such as works of art or antiques. If you have high value items, you should check your policy wording to see if any limits apply.