There are many conditions included in the home insurance policy. Those conditions include what things come under the scope of insurance and what things do not. It is wise to know about this properly before getting the house insured.
Buying a house is the biggest transaction for a person or a family. Many people spend many years of savings in buying a house. After this, a home loan also has to be taken. In such a situation, it is necessary to insure the house to protect it from natural disasters, fire, etc. General insurance companies insure the house. This insurance also covers the things inside the house. If the house is damaged due to flood, storm, etc., it is compensated by the insurance company.
There are many conditions included in the home insurance policy. Those conditions include what things come under the scope of insurance and what things do not. It is wise to know about this properly before getting the house insured. We are telling you about those situations which are not covered under insurance.
Commercial use of house
If you have rented out your house for commercial use after insuring it, then it will be considered a commercial property. Your home insurance policy will not cover this property. Therefore, if you have planned to rent out your house for commercial activities, then there is no benefit in insuring it.
Authorities’ order to demolish
If there is an order from any government authority to demolish the house, then the loss caused by it will not be compensated under the home insurance policy. Generally, in case of a house built on government land or construction without permission, the authority orders the demolition of the house.
Loss due to poor construction
If the house suffers any kind of damage due to defects in construction, then the loss will not be compensated by the insurance company. Many times, due to the use of poor construction material by the contractor, some part of the house collapses. This causes a lot of loss.
Intentional damage to the house
If the house is intentionally damaged by the house owner, then the insurance company will not compensate for that loss. This condition is included in the policy. But, generally the insured person is not aware of this. Therefore, it is important to know about all such conditions before buying a policy.
Related Articles:
Post Office Small Saving Scheme: Investment amount doubles in Kisan Vikas Patra Scheme, know details
Jio vs Airtel 299 Recharge Plan: Who is giving more benefits? Know here
Upcoming EVs Cars in India: Top 5 Electric SUVs to be launched in the next few months
