The recent rainstorm might have caused many to wonder if they have enough coverage with their home insurance. In the past, some may choose to take out home insurance just before the typhoon season hits, yet with extreme weather conditions becoming common and unpredictable, it is important to have the right coverage to protect your home. However, with so many products out there, all with different sets of terms, rules and exclusions, it is important to understand them before committing to any. Here are five commonly asked questions on the matter:
1. Does home insurance cover damaged windows?
It depends. A home insurance policy usually covers interior damage. If a damaged window is not an original fixture but part of the refurbishment when you move in, it will be covered. An unfurbished window is considered as part of the original structure and will be covered by the fire insurance.
2. Does home insurance cover all kinds of property damage?
Home insurance covers the followings incurred by accidents: loss or damage of household contents such as furniture, home appliances, clothes and jewellery, as well as loss, or damage of personal effects, or injury suffered by a third party. Some plans don’t cover mobile phones or other items that can be used as a mobile phone, while others don’t cover items on rooftop or in an outdoor area. If you have a rooftop or balcony, you should consider a plan that offers the coverage you need.
Note also coverage for older buildings (i.e. over 50 years) or damage caused by rainwater seepage may vary among insurance companies. Do take time to understand the terms and conditions before taking out a policy.
3. What are there exclusions?
Generally, unauthorised building works, illegal structures and long-vacant apartments are excluded. For instance, if the vacancy limit of your home insurance is 30 consecutive days, and you have been travelling for over 30 days with your family, any property damage caused by the severe weather while you are away will not be covered.
4. Do I have to pay deductibles before making a claim?
Most home insurance plans come with a deductible, which is a specific amount that you have to pay before making a claim. Typically, you can only make a claim if the amount is higher than the deductible. Say if the deductible is $1,000, and the claimed repair cost is $800, you’ll have to bear the loss.
5. Does the policy take immediate effect after I purchase it?
If you purchase home insurance today because you think typhoon signal no.8 may be issued tomorrow, you may not be covered immediately because some plans impose a waiting period during which claims will not be processed. If you want to stay safe during the typhoon season, make sure you have a home insurance in place as early as possible before the storm strikes.
Before taking out a home insurance policy, it is important to consider various factors and compare quotations before choosing a plan that best suits your needs.
