What a home insurance policy will not cover

While a home insurance policy will protect you against several risks, there are also exclusions in the contract. Some of these are quite obvious and logical, but others may be hidden in the fine print. The following will not be covered:

Deliberate damage by owner

If the damage happens due to a deliberate action of the property owner, the loss will not be covered by insurance. Likewise, any loss due to misuse of a device or appliance will not be covered. Companies go to great extents to detect any evidence of fraud or attempts to mislead.Outside coverage area
The contents of the house are covered as long as these are inside the house. “The coverage is limited to within the insured area,” says Tarun Mathur, CBO, General Insurance & Co-founder, Policybazaar. If the contents are taken out and get damaged, the loss will not be covered.

Group cover for structure.
Housing societies also take insurance cover for the housing complex. However, this cover is often limited to the structure. The contents of the house may not be covered. “Homeowners should take a separate cover for their unit and its contents,” says Srabasti Dhali, Vice-President & National Manager, PCG & Home, TATA AIG General Insurance.

Residential or commercial
Make sure you have taken the right insurance policy. “A house leased out to a holiday rental company will be treated as a commercial property and a home insurance policy will not cover it,” says Vivek Chaturvedi, CMO and Head of Direct Sales, Digit General Insurance.Faulty construction
If a house gets damaged due to faulty construction, the home insurance policy will not pay. Likewise, if the damage is due to the use of sub-standard or inappropriate material, the loss will not be compensated.

Demolition by authorities
If the house is damaged following orders of a public authority, the loss so incurred will not be covered by home insurance. The removal of illegal or unauthorised constructions will not get compensation.

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