Home insurance exclusions

There seems to be a common misconception about home insurance cover. Certainly when it comes to comprehensive home insurance cover that is. The misconception is perhaps reinforced by the term itself 'comprehensive', leading many to believe that once purchased that all or any type of loss or damage from any cause to their belongings be it buildings or contents will automatically be covered. This is a misconception because for the most part it simply isn't true.

When you make a purchase that involves a contract between you and the seller, or in this case the insurance company, the onus or responsibility is on you to be aware of any terms or conditions relating to that contract. Admittedly the thought of reading through an insurance policy document from top to bottom would seem a less than interesting task, and no doubt this is perhaps why so many people have a misconception about comprehensive insurance cover. However, this does not change the importance of being aware of the terms and conditions of any policy as undoubtedly within those terms and conditions will be exclusions.

There will be certain types of risk or potential types of loss or damage that will fall outside of an insurance policy, even a comprehensive one. These are called exclusions. Some examples of exclusions are:

1. Pollution or contamination unless it arises from a sudden incident within the period of insurance and is entirely accidental and unexpected.
2. The failure of any equipment or any computer program to recognise or correctly interpret any date or change of date or to continue to function correctly beyond that date or any consequential loss or legal liability (other than to your domestic employees).
3. Loss or corruption of any item or items including computer hardware or software or data caused by any program or software intended to cause such loss or corruption or by the failure to keep adequate back-up copies.
4. Loss, damage, liability, cost or expense resulting from or in connection with terrorism.
5. Gates and fences are not usually covered for storm or flood damage.

There are many exclusions which will differ between home insurance companies and insurance policies and you can expect to see far more detailed versions of the above (the above examples have been reduced in detail) within the terms and conditions offered. While we would always advocate that you read all information that is relevant to the policy you’re looked at we cannot impress upon you more the importance of checking for exclusions. It could end up saving you a lot of money in the near future.

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