Home Loan - Home Insurance
Home Insurance Policies—The BasicsA basic home policy covers perils, which are specifically named risks such as lightning, theft, fire, smoke, wind and explosion. With this type of policy; any risk that is not mentioned specifically in your policy is not covered. From some insurance companies you are able to purchase special policies that cover the house for all perils except those explicitly excluded by the policy though, such as pet damage.
The chart below illustrates typical coverage under a leading insurers standard home policy.
DESCRIPTION / EXPLANATION
- Residence, attached/built-in garage
- Includes structures you own that are not attached to the house, such as storage sheds, fences and barns.
- Motor vehicles such as your lawn mower or motorised wheelchair are covered, but your automobile must be covered by a separate auto insurance policy.
- Covers damage, theft (some items subject to special limits) or destruction of items such as televisions, stereos, furniture, etc.
- Covers the additional costs of living in case you have to move out of your home and live in a hotel or rental while it is being repaired for a covered loss.
- Covers expenses in the event you are found to be legally responsible for damages or injuries to others, on or off your property.