What Does Accidental Damage Insurance Cover?
What Does accidental damage insurance cover? Accidental damage insurance is usually offered as an optional extension of business insurance or contents insurance, should you wish to add the additional policy to pre-existing insurance. On the other hand, some insurers find it a necessary cover and include it in the insurance without it being classed as extra. Either way, it is essential to understand what types of things are covered within accidental damage insurance to decide whether they will benefit you. It is usually obtained by landlords to protect against damage by tenants but can also be utilised by businesses to protect against client damage or even by homeowners.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here .
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What is Accidental Damage Insurance?
Accidental damage insurance is a type of insurance coverage that protects against unforeseen and unintentional damage to your property or possessions. This can include damage to items within your home, personal belongings, or even your home itself. Accidental damage insurance is typically an optional add-on to standard home insurance policies and can cover a wide range of accidental incidents, such as:
Damage to Personal Belongings
Damage to Home Fixtures
Accidental Spills and Breakage
DIY Mishaps
Damage Caused by pets
Accidental Damage to Third Parties
What Does Accidental Damage Insurance Cover?
The Building
When accidental damage insurance is obtained as part of building insurance, it covers any infrastructure when it is damaged because of an action that unintentionally broke or destroyed it. Ordinary buildings insurance only covers this damage if a fire or flood makes it, so having accidental damage insurance can further the policy to cover the damage made by the tenants. This usually includes the walls and floors of the house and any fixtures that are directly attached: a fixture is a property such as a sink, bathtub, radiator, boiler, or socket.
2. Furniture
Accidental damage insurance for contents covers any furniture in the property, such as beds, sofas, tables and chairs. It is easy to damage these contents, especially if there are younger children or many living in the house, which is why this cover can be advantageous.
For example, if a child were playing in their room and lost their balance, crashing straight into the wooden bed and breaking it, the insurance company would be responsible for compensating for its repair. Similarly, if they used a pen that leaked through the paper and painted onto the table, the costs for restoring the table to its original appearance would be covered.
3. Appliances
Appliances are also covered in accidental damage insurance for contents. Often, numerous expensive appliances in a property are put there to make life easier and the home more liveable. Such appliances include dishwashers, washing machines, tumble driers, air conditioners, etc. If you have multiple appliances, it may be worthwhile to consider accidental damage insurance, as the annual premiums would be cheaper than the costs of replacing the machine.
For example, if a tenant poured too much powder into the washing machine, it could block the pipes and leave a nasty smell. The insurance company covered the costs of hiring a plumber and repairing this, as the damage was accidental.
4. Fittings
Fittings are the opposite of fixtures. They are not attached to the building permanently, so they would be covered by accidental damage insurance for contents, not building insurance. Such items include carpets, curtains, mirrors, and lamps, which can be plugged in or hung up but cannot be installed and taken off. For example, if a glass of cranberry juice were dropped and left a red mark on the carpet, the insurance would cover the expenses of replacing it.
What Does Accidental Damage Insurance Not Cover?
It is just as valuable to know what accident damage insurance does not cover as what it does cover. Having full knowledge of the policies offered allows you to decide whether obtaining this cover may be cost-efficient for you or if it would simply be an extra expense.
The destruction caused by animals is not included in this policy. If your pet dog broke the door whilst running, your cat ripped the sofa, or a bird flew into the window and cracked it, you would be held liable for repairing the damage or even entirely replacing the item. Although children are covered within the policy, pets are not. Similarly, damage caused by insects and other pests would not be a valid reason for filing a claim. So controlling the environment where you live and keeping it clean and safe would be your responsibility.
Like average contents insurance, appliances ‘wear and tear’ is never included in insurance policies. If you use old equipment that has deteriorated in quality, your dishwasher did not clean plates correctly. The replacement costs would not be covered because the damage was not accidental or caused by a fire or flood. Similarly, the insurance company would note this down if the furniture was already scratched before applying because the cover only applies when the policy starts.
What Does Accidental Damage Insurance Cover?
So what does accidental damage insurance cover? Overall accidental damage insurance can cover your building or the contents inside when they are either slightly damaged or destroyed. This could be damaged by a tenant when talking about landlord insurance or yourself regarding homeowners or business insurance.
Find out more about the importance of insurance here .
Other useful links about Business Insurance:
Is Professional Indemnity Insurance a Legal Requirement?
How Much Product Liability Insurance Do I Need?
Is Employers’ Liability Insurance a Legal Requirement?
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