Mr and Mrs Kodo bought their first home from a real estate company
using a mortgage. As part of the mortgage requirements, they had to
insure the property against fire and some other perils. The insurance
agent did exactly what was required by the mortgage company. A few
months after, there was a burglary and the couple lost some valuable
household contents and personal effects. The insurance company declined
the claim saying the policy only covered the building and not the
household contents and personal effects.
The Myth
Once you insure your home everything is covered
The Reality
Your home insurance only covers the specific items that were insured
against the perils you asked for.
The Advice
Do not assume your home insurance covers everything at home. It only
covers the specific items you insured. The mortgage company is only
interested in the building and will insure the building only. You will have
to add other household items to the insurance policy and be specific to
your insurer to cover the losses you anticipate.
It is possible the the policy that was taken for Mr and Mrs Kodo covered
the building only.
Check your home insurance today and speak to your insurer, broker or
agent for more information or you may connect with us for more insights..
#Getinsured
Written by the Bima Advisors Team
