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Monday, 19 September 2011

Your Home Insurance Questions Answered

At the Insurance Experts blog, we love going through the insurance questions you send us! In addition to individually answering your questions, we like to post a handful of questions on the site to help other readers who may be confused about the same things!

Today, we tackle your home insurance questions! 

1. If I have an "all perils" or "all risks" insurance policy, does that mean I'm covered for everything? 
Unfortunately, a lot of the terms used in the insurance industry are not the most descriptive. Comprehensive insurance, which covers you against "all risk", has exceptions and exclusions. While it does cover you for almost everything, nearly every comprehensive contract will have exclusionary clauses that exclude perils like floods and earthquakes for instance.

When buying insurance, be sure to have your insurance broker go through all the exclusionary clauses so you understand exactly what you are covered for!

2. What should I do if a friend of mine breaks something valuable in my house? 
If someone you know breaks something expensive in your house, you're better off dealing directly with your friend as opposed to making a claim. If you make a claim, you will be indemnified by your provider, who will then extract damages from your friend. To make things simpler, avoid putting a claim on your record and request compensation directly from your friend.

3. If I decide I don't want to replace an item that was stolen, can I still get cash for it? 
It depends on your policy, but typically you will receive cash indemnification in lieu of replacement if you so choose. Ask your insurance broker to further explain how your policy works with respect to replacement and cash indemnification.

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