In a household content insurance policy, it is not just what is covered to which you should pay attention.
Equally important, if not more, are the major exclusions in the policy.
Understanding these major exclusions in the policy might very well help prevent complaints and disputes in claims in the future.
This is the advice of the Consumer Council in a report on Household Content Insurance.
In the report was also noted the general misconception that the coverage of Household Content Insurance and Building Insurance is the same, but they are not.
The former covers mainly liability to third parties and loss or damage to household contents such as furniture, electrical appliances and decorations.
The latter covers mainly damage to the insured building structure such as ceiling, floor boards, the repair and maintenance cost, fire accident or explosion.
Apart from basic coverage, some Household Content Insurance provide also additional optional covers such as worldwide personal liability, domestic helper's insurance, golfer insurance, loss of rent insurance, etc. The optional coverage premium is generally paid yearly on a certain percentage of the sum insured.
Some Household Content Insurance policies can add in worldwide all risks for personal belongings as in travel insurance.
But consumers should be reminded that travel insurance could not be totally replaced by Household Content Insurance as travel insurance provides also cover for medical expenses, travel cancellation or delay, etc. which Household Content Insurance does not.
The report contains also other general tips on choosing Household Content Insurance and 10 of the frequently asked questions on the subject.
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