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Demystifying Domestic Insurance Cover, Part 1

What is domestic Package Insurance?

Domestic package insurance provides financial protection against misfortunes. A standard policy insures the home itself and the things you keep in it.

Domestic package insurance is a combined policy. This means that it covers both damage to your property and your liability or liability of members of your family to other people.

Damage caused by most misfortune is covered but there are exceptions such as terrorism, destruction of buildings by government or local authority, poor maintenance, electrical or mechanical breakdown and loss of cash.

What is a standard Domestic Package Insurance Cover?

A standard domestic package insurance policy includes four essential types of cover. They include:

  • Cover for the structure of your home (often referred to as section A).
  • Cover for your personal belongings or contents of the building (section B and C).
  • Liability protection (Section D and E).
  • Additional living expenses in the event you are temporarily unable to live in your home because of a fire or other insured event.

Which are the common types of misfortunes covered in a Domestic Package cover?

The most common misfortunes covered by these policies include: –

  1. Fire or lightning
  2. Windstorm or hail
  3. Explosion
  4. Damage caused by aircraft
  5. Vandalism or malicious mischief
  6. Theft
  7. Accidental discharge or overflow of water.
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