Common Inclusions and Exclusions in Home Insurance Policies

A home insurance plan secures your property from unexpected risk by offering financial coverage against damages caused to the insured property. It is important to have a home insurance policy for those who want to make sure that their home is protected from all sorts of risks that may damage the property. To help you understand here is a list of common inclusions and exclusions in a home insurance policy:

The common inclusions in most of the home insurance policies are for damages caused by:

  • Aircraft damage.
  • Riot.
  • Strike.
  • Missile testing operations.
  • Storm.
  • Flood.
  • Cyclone.
  • Lightening.
  • Earthquake cover.
  • Theft – The contents including silver items, precious stones, and jewelry, provided that all these are kept locked in your home.

Exclusions in Home Insurance Policy

The exclusions in most of the home insurance policies are:

  • Wear and tear or loss because of depreciation.
  • Cash loss.
  • Act of any foreign country or war.
  • Nuclear war.
  • Loss of an electronic because of over-use.

Some of the unexpected hassles could end up costing you a lot when it comes to your home. Some other common exclusion in most home insurance plans:

  • Movement of the earth –cases of damage by erosion or volcanic action are in most cases excluded from the insurance plan. You may buy a separate rider to add to the plan.
  • If you do not maintain your property well and then the property gets damaged. If that happens, then the policy will not cover the damage.
  • Any intentional loss, like if the policyholder damages his property himself, the damages will not be covered by the insurance company.
  • Any pre-existing damage like any wear and tear or any defects
  • There could be damaged because of rodents at home and most of the standard insurance policies will not cover this. War and nuclear accidents will not be covered.
  • If you have a small business running at your home, then its equipment is also not covered under the home insurance plan.

The homeowner should take care to understand what their policy excludes. They can check the policy wordings for their home insurance online.