What is Covered Under a Household Insurance Policy?

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Buildings Insurance Cover

The buildings section of a household policy is designed to cover the structure of the home including additional elements, such as walls, fences, paths and driveways, garages, outbuildings and fuel storage tanks. The term ‘buildings’ is specifically defined in the policy wording.

All insurers provide cover for damage caused by a range of perils, including:

  • fire, lightning, explosion and earthquake
  • riot, civil commotion, strikes, labour or political disturbances, malicious damage or vandalism
  • storm and flood
  • falling trees or branches
  • escape of water or oil
  • theft or attempted theft
  • impact
  • subsidence, ground heave or landslip
  • Falling television or radio receiving aerials, their fittings and masts.

A number of other items are automatically included in the cover provided, such as:

  • accidental damage to services
  • accidental damage to fixed glass and sanitary fittings
  • legal fees, architects’ and surveyors’ fees and debris removal costs incurred following damage to the buildings
  • loss of rent or the cost of alternative accommodation
  • repairs to plumbing after freezing
  • repair of damage following forced emergency access
  • sale of the home, giving the purchaser the benefit of the insurance up to the date of completion
  • replacement of locks following loss or theft of keys
  • the cost of tracing leaks following an escape of water causing damage to the home

Contents Insurance cover

The contents section of a household policy covers any household goods and personal possessions belonging to the insured or members of their household or for which they are legally responsible. Certain items of property are specifically excluded, such as securities, certificates and documents and livestock and pets.

Tenant’s fixtures and fittings and a limited amount of business equipment are also covered, where applicable.

Insurers usually place limits on single articles of value, the total amount of valuable items and money.

The perils covered are largely the same as those covered by the buildings section, subject to minor variations in the wording. The main difference is in relation to theft cover, where loss of money or credit cards and loss or damage while the home or any part of it is let or sublet, must involve the use of force and violence.

A number of other items are automatically included in the cover provided:

  • temporary removal of contents
  • contents in the garden
  • accidental damage to the contents during household removal
  • accidental damage to fixed glass and mirrors
  • accidental damage to entertainment equipment
  • the cost of alternative accommodation following insured damage
  • loss of heating fuel or metered water
  • the cost of replacing external door locks and keys, following the loss or theft of keys to the home
  • temporary increases in sums insured to cover, for example, wedding gifts and gifts and food bought for Christmas or other religious festivals
  • Loss of title deeds.

Cover is most commonly provided on a ‘new for old’ basis where the full cost of replacing the property as new is paid, subject to the limit of the sum insured. Sums insured are usually index linked, so that they rise in line with inflation.

Legal liability Insurance Cover

All buildings and contents household policies automatically include liability cover.

The buildings section covers liability arising out of owning the home, including liability incurred under the Kenyan law

The contents section covers liability arising out of occupying the home. The insured’s personal liability as a private individual, liability as an employer of domestic servants and liability as a tenant, where applicable, are also covered. A limit of indemnity applies to any one claim. If the claim involves an employee being injured or falling ill, the limit of indemnity is usually increased.

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