Home insurance is commonly referred to as domestic package insurance. It protects against a variety of losses related to your home, its contents and liabilities to persons inside your home.
A standard domestic package insurance covers 4 areas, namely:
This part of your policy pays to repair or rebuild your home if it is damaged or destroyed by fire, lighting, storm or other disaster listed in your policy.
- 2. Personal belongings (Section B & C)
Under section B the policy covers loss or damage to personal belongings like furniture, household goods, electrical equipment and other personal items if they are stolen, destroyed by fire or other insured event.
An all risks cover under section C is often provided to cater for items that are taken out of the house like jewellery laptop computers, mobile phones and cameras.
- 3. Liability protection (Section D, E and F)
The policy covers domestic workers under section D for injury or death arising from domestic work. This cover ensures that an individual is indemnified against liability at law under the Workmen’s Compensation Act (WCA)
Public liability cover under Section E and F protects owners and occupiers respectively against lawsuits for bodily injury or property damage that they or their family members cause to other people. The liability section of the policy pays for the cost of defending you in court and any court awards up to the limit of your policy.
- 4. Additional living expenses
This pays the additional costs of living away from your home if you can’t live there owing to damage from a fire, storm, or other insured disaster.
It is however important to note that damage caused by most misfortune is covered but there are exceptions such as terrorism, destruction of buildings by government or local authority, poor maintenance, electrical or mechanical breakdown and loss of cash.
The most common misfortunes covered by these policies include: –
Fire or lighting
Windstorm or hail
Damage caused by aircraft
Vandalism or malicious mischief
Accidental discharge or overflow of water.