Household Policy: Insured Perils & Property Risks

• A household policy provides wide-ranging coverage for various perils.

Insured Perils

• Fire, lightning, and explosion are typically covered.
• Natural disasters like hurricanes, earthquakes, and volcanic eruptions are included.
• Coverage extends to flood damage.
• Theft, including larceny, is generally covered, even without forced entry.
• Protection against riot, strike, and malicious damage is provided.
• Damage from bursting or overflowing water tanks and pipes is covered.
• Impact from vehicles, aircraft, or aerial devices is an insured peril.
• Damage due to breakage or collapse of TV or radio antennas is included.
• Some policies cover collapse from subsidence or landslip.
• Smoke damage is covered if sudden, unusual, and accidental.
• Damage from falling trees or parts is sometimes included.

Property Risks Covered: Buildings

• Covers loss or damage to the insured's private dwelling from insured perils.
• Includes architects' and surveyors' fees for replacing damaged buildings.
• Covers the costs of removing debris after damage from an insured peril.
• Covers accidental breakage of fixed glass and sanitary fixtures up to a policy limit.
• Loss of rent incurred due to damage from an insured peril is covered, up to a percentage of the building's insured value.
• Buildings can be insured on a reinstatement basis, covering the cost of replacement with new property of the same kind, without deducting for wear and tear.
• An 85% condition of average applies to reinstatement.
• If the insured doesn't reinstate, the claim is settled on an indemnity basis, deducting depreciation.

Property Risks Covered: Contents

• Covers loss or damage to household goods and personal effects from insured perils.
• Insurers usually need details for electronics and a valuation for jewelry.
• Property used for business is not covered.
• Temporary removal of contents is covered, up to 15% of the contents' insured value.
• Accidental breakage of mirrors and glass is included.
• Servants' goods not otherwise insured are covered.
• Covers rent or additional expenses if the building containing the insured contents is damaged.
• Compensation for the death of the insured or spouse by burglars or fire is provided, limited to $5,000 or half the contents' insured value, whichever is less.
• Contents are insured on a 'new for old' basis, without deducting for wear and tear, except for clothing and household linen.
• The insured value must represent the full replacement value of the contents, or depreciation is factored into claims.

All Risks on Contents

• Certain valuables, like jewelry, can be covered on an 'all risks' basis.
• The extent of cover is wider than named insured perils, covering any cause not specifically excluded.
• It may apply beyond the home, potentially covering items anywhere in Trinidad and Tobago, the West Indies, or worldwide.
• Exclusions include loss or damage from atmospheric conditions, wear and tear, renovation processes, or mechanical/electrical issues.
• Theft of jewelry from baggage is excluded unless carried by hand by the insured or family member.
• Theft from unattended hotel rooms is also excluded.

Liability Risks Covered: Public Liability

• Protects against sums the insured is legally liable to pay as owner/occupier for accidents on the premises causing death, injury, or property damage to third parties.
• Excludes liability for business risks.

Liability Risks Covered: Personal Liability

• Indemnifies the insured or resident family member against sums legally liable to pay as a private individual for accidents in Trinidad and Tobago causing death, injury, or property damage.
• Excludes liability for business risks and motor vehicle accidents.

Liability Risks Covered: Workmen’s Compensation

• Covers the insured's legal liability for injury to domestic servants during employment.
• Liability may arise under the Workmen’s Compensation Act or common law.
• Excludes servants with casual employment.

Underwriting Factors

• Factors considered for household policy underwriting include:
• Property situation
• Insured's/spouse's profession or occupation
• Building's age and construction
• Building's state of repair
• Special exposure to insured perils
• Age, construction, and occupation of nearby buildings
• Likely unoccupancy periods
• Use of property other than residential
• Insurance history
• Claims/losses history

Covers a wide range of perils, including fire, natural disasters, theft, and water damage. Buildings are protected against various risks. This also includes architects' and surveyors' fees for replacing damaged property.