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Frequently Asked Questions
Domestic Package
Q: What is a Domestic Package insurance?
A: Domestic Package Insurance provides financial protection against
disasters. A standard policy insures the home itself and the things
you keep in it.
Domestic Package Insurance is a package policy. This means that
it covers both damage to your property and your liability or legal
responsibility for any injuries and property damage you or members
of your family cause to other people not involving a vehicle.
This normally includes damage caused by household pets.
Loss caused by theft is normally included with certain limitations
on such items as jewelry, cash, valuable papers and several other
items. If you feel you may have any items that could be limited
or excluded please mention it to us when arranging your coverage.
Damage caused by most disasters is covered but there are exceptions.
Maintenance-related problems are the homeowners’ responsibility.
Q: What is in a standard Domestic Package Insurance policy?
A: A standard Domestic Package Insurance policy includes four
essential types of coverage. They include:
1. Buildings- Coverage for the structure of your home
2. Contents- Coverage for your personal belongings
3. All Risks
4. Workman’s Compensation
5. Liability protection.
Buildings.-The structure of your house
This part of your policy pays to repair or rebuild your home
if it is damaged or destroyed by fire, wind, hail, lightning,
Earthquake, riot, strike, volcanic eruption, escape of water or
other insured disaster listed in your policy. It will not pay
for damage caused by routine wear and tear. When purchasing coverage
for the structure of your home, it is important to buy enough
to rebuild your home.
Contents-Your personal belongings
Under this section, the property (household items) belonging
to the insured or member of his family residing with him may be
covered against perils mentioned and covers all the perils covered
under section A- Building, including and theft or burglary. No
articles shall be deemed to be greater value than 5% of the total
sum insured unless specifically insured.
The best way to determine the contents in your house is to do
a home inventory.
All Risks
The properties which may be insured under this section are those
valued ones like TV, jewellery, watches, earrings, mobile phones,
cameras, radios etc on "All Risks" basis. This part
of your policy includes off-premises coverage.
Workman’s Compensation
This section covers death or injury to domestic workers arising
out of and in the course of employment. The policy allows for
insurance for up to 3 domestic servants but this may be extended
on payment of additional premium
Owner/Occupier’s Liability protection
The policy will indemnify the insured against liability at law
to pay compensation
in respect of:
a) Accidental bodily injury (including illness) to any person
other than a member of the insured family or household or person
in his service at the time of the occurrence.
b) Accidental loss of or damage to property not belonging to or
in the custody or control of the insured or family member or person
in his service.
The loss or damage must occur at the premises of the insured during
the currency of the policy. The insured must be legally liable
as owner (not occupier) of the premises. The insurers liability
under this section is always restricted to a maximum amount i.e.
Kshs.1, 000,000 for any one claim or a series of claims arising
out of one event. However, you have an option to the limit of
cover for an additional premium.
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Q: How much Domestic Insurance do I need?
A: You need enough insurance to cover the following:
1. The structure of your home but not less than your mortgage.
2. Your personal possessions
3. Your liability to others
Buildings-The structure
You need enough insurance to cover the cost of rebuilding your
home at current construction costs. Do not include the cost of
the land and do not base your rebuilding costs on the price you
paid for your home. The cost of rebuilding could be more than
the price you paid or you could sell it today.
Most lenders require you to by Domestic Package Insurance to
cover the amount of your mortgage. If the limit of your insurance
policy is based on your mortgage make sure it is enough to cover
the cost of rebuilding. (If you pay off your mortgage do not,
cancel your policy. The Domestic Package Insurance protects your
investment in your home.)
The responsibility for determining the correct coverage to carry
on your home ultimately falls on the homeowner.
Contents-Your Personal Possessions
To determine if this enough coverage, you need to do a home inventory.
This is a detailed list of everything you own and information
related to the cost to replace these items if they were destroyed
by an insured event.
Liability protection
The liability portion of your policy pays for both the cost of
defending you and any court awards—up to the limit of your
policy with world wide coverage.
Q: How can I save money?
A: The price you pay for your Domestic Package Insurance can vary
depending on the size of your house and the insurance coverage
you buy. Do not make your decision on price alone. You want an
agent and agency that represents numerous markets and will shop
for you based on your needs and budget. You want someone that
answers your questions and handles claims fairly and efficiently.
Select an agent that takes the time to answer your questions and
returns your calls.
Here are some ways or save money:
Buy your home and auto policies from the same insurer
Most companies that sell Domestic Package Insurance also sell
auto insurance. Some insurance companies will reduce your premium
if you buy tow insurance policies from them. But make certain
this combined price is lower than buying the coverage from separate
companies.
Do not confuse what you paid for your house with rebuilding costs
The land under your house is not at risk from theft, windstorm,
fire and the other perils covered in your homeowners policy. So
don’t include its value in deciding how much to Domestic
Package Insurance to buy.
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