An insurance policy describes your coverage , including the perils covered and the amount and period of coverage. The policy also describes the exclusions , ie the risks not covered. Read the policy carefully to find out what coverage you have.The following conditions apply to most insurance policies:The insurance does not cover damage caused intentionally by the insured.The insurance covers only the period specified in the contract (the duration ).You may not be covered if you do not take reasonable steps to limit the damage, i.e. damage mitigation measures . For example, if water seeps through the roof of your house and you don’t try to plug the hole, you might not get full coverage.The amount of an indemnity is usually calculated according to the value of an asset less its depreciation at the time it suffered damage (its value on the day of the loss ). For example, if your television is stolen, and you bought it five years ago, your compensation will be the value of the used television, not the value of a new television. However, the coverage of certain policies includes the replacement of an item at its current price (its replacement value ).
If your policy doesn’t cover replacement cost, you may be able to pay extra for it.
You must inform the insurer of all factors which may affect the risks covered by the policy. The insurer could refuse to pay you compensation if you have made a false declaration relating to the risks.If you don’t pay your premiums on time, the insurer may cancel your policy.Definitions Damage Mitigation: Obligation to promptly take reasonable steps to limit damage to your property.Coverage: Protection you get when you buy an insurance product and the maximum amount of money the insurance company will pay you if you make a claim.Duration: Period during which the risks are covered by your insurance policy.
Exclusions: Risks not covered by your insurance policy.
False declaration: Omission to declare to the insurer in a complete and honest manner all the information which could have an effect on its decision to insure you and on the amount of your insurance premium. The insurer can cancel your policy and refuse to pay you a benefit because of a misrepresentation.Replacement value: Compensation paid for an asset, which is calculated according to its replacement cost, without taking into account its depreciation.Value on the day of the loss: Compensation paid for an asset, calculated according to its condition at the time it suffered damage, that is to say minus its depreciation.