• A household insurance policy covers the building and its contents against loss, destruction or damage caused by various situations specified in the policy. There are also certain situations/causes, which are specifically excluded from the insurance cover such as act of war, nuclear radiation etc. But normal causes of destruction, loss or damage are well covered.
• The policy enjoins upon you to take all reasonable steps to safeguard the insured property against loss or damage. The insurance companies do reject claims for compensation in case the insured has himself contributed to the loss or damage due to negligence or otherwise.
• The policy provides that any misrepresentations or mis-descriptions or fraudulent claims can lead to cancellation of the policy and forfeiture of the premium/ benefits under the policy.
• In the event of loss or damage to the insured property, the insured is required to inform the insurance company immediately followed by details of the loss or damage in writing within a period not exceeding 14 days. Please note that as against this condition, the policy does not set any time limit for settlement of the claims by the company. On the other hand there is generally a clause which provides that no sums payable under this policy shall carry interest.
