Building Insurance- Never Make The Mistake Of Presuming Anything About Your Insurance Policy

Insurance companies have always been notorious for splitting hairs on the meaning of different terms and phrases. When your insurance agent tells you that your building insurance policy protects you from the risk of fire, you will presume that the policy will cover each and every instance of damage caused by fire, right? Wrong.

The insurance company will have a specific definition of fire for your buildings and contents insurance policy. If the damage suffered is not falling within the ambit of your building insurance policy, you will not enjoy the benefits.

For example, a fire that is caused due to burning of a forest situated near your house would obviously be covered by the building insurance policy. However, the fire that was caused by accidental slippage of the cigarette in your hand on to your sofa will not be covered. This is because the latter falls under the ambit of household damage.

This is a completely different head of buildings and contents insurance. If your computer is damaged because of an electrical surge, this falls under the ambit of electrical damage in your building insurance policy.

Of course, the excess electrical surge might have literally burnt the insides of your computer. Yet, it does not fall under the definition of fire in buildings and content insurance terminology.

Does this mean you should go through each and every point specified in your buildings insurance policy and understand its meaning before signing on the dotted line? Sadly, yes. This problem becomes even more serious in event of a comprehensive policy.

The ordinary meaning of the word comprehensive means something that covers each and every aspect. That is not the case in case of buildings and contents insurance industry. The internet is a force multiplier because you can get in touch with different customers of different companies and find out how and what their past experiences have been.

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