Home Insurance Excess and Exclusions
Every homeowner should carry two types of insurance, buildings insurance, which covers the structure, and contents insurance, which covers your household possessions. These policies can be taken in combination or individually; in either case, there will be excesses and exclusions that need to be reviewed
Home Buildings Insurance
Exclusions
In the case of the buildings insurance section of your cover, the most common exclusions include:
• Storm damage to fences and gates
• Damage from frost
• Structural damage caused by aircraft sonic boom
Exclusions can also be specific to a location, for example lack of flood coverage in a high-flood area, so before committing, be sure to find out exactly what exclusions apply.
One thing buildings insurance generally does not cover is normal wear and tear. This may affect the amount your insurer pays in the event of a claim. Also, there may be problems if you spend a lot of time away from home. Some policies have restrictions, which take effect when you’ve been absent for more than 30 days.
Excess
Excess refers to the amount you will be out of pocket before your insurer pays out. The amount of excess you pay is dependent on the type of policy and which clause in your policy the claim falls under.
Home Contents Insurance
Home contents insurance covers your possessions, furniture, electronics, soft furnishings, etc. The excess for home content is usually set by the insured and will affect the monthly premium amount.
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