A lot of people don't realize that when you take out a comprehensive insurance contract, you are not necessarily covered against anything that might happen to one of your insured items such as your car or home.
All insurance packages will have a list of perils which are covered (things/events that could cause damage to your possessions for example a fire). Anything outside of this list, won't be covered by your insurance company. Under some sections it will show a list of exclusions, the items insured under this section will be covered against everything except what is noted under exclusions.
It is important that you as the client are aware of what you are covered for at the time that you take out the insurance policy.
Here are a few examples:
LACK OF MAINTENANCE
Insurance companies will not cover damage caused by lack of maintenance. For example, if a client has a leaking pipe, the insurer will not cover the costs that the leak could cause to the contents of the house or the floor or walls of the house because the client could have maintained the house by repairing the pipe, therefore eliminating further damage to other things.
IN CASE OF BURGLARY, NO VISIBLE SIGNS OF FORCED ENTRY
If you are robbed at your home and you need to claim for the items that were stolen, if there are no physical signs of forced entry there is a chance that the claim will be rejected.
If your house wasn't build correctly and there is a big hail storm that damages the incorrectly built parts of your home, the insurer might not settle the claim due to the fact that the hail didn't actually cause the damage but it was in fact the part of your house in question that was not build properly. The insurance policy would have settled a hail damage claim however they did not agree to cover damage as a result of poor or incorrect construction.
Unfortunately there are a lot of instances or perils that insurance companies can't insure against but you can be rest assured that whatever is on your policy schedule will be honored in the event of a claim.
This is why it is so important for you to read through your policy schedules and wording when you receive the policy. If you know what you are not covered for, you will be more responsible and will ensure that the risk of damage by the excluded perils is kept to the absolute minimum.
Luckily, there are insurance brokers out there like us who can explain and help you understand your insurance policies 100%!
Are you not sure what you are and aren't covered for on your insurance company? Contact us today for help!