What Are The Exclusions for Home Shield Insurance?

Posted on: May 26, 2025 | 3 mins | Written by: HDFC ERGO Team

What Are The Exclusions for Home Shield Insurance?

Acquiring a home is in itself a milestone, especially in the Indian context. It requires years of careful financial planning and steady income to achieve this goal. It is a very special place, offering peace, solace, protection, and rest to the tired souls of its inmates.

But, this haven too needs protection from the damages caused by certain perils like burglars, vandals, thieves, and sometimes, even nature. Considering these aspects, we can say that a comprehensive home shield insurance policy will help you go a long way. You can also invest in a reliable home insurance plan or a homeowners insurance plan, which has been ideally crafted to suit your needs as a homeowner.

If you are not a homeowner, no need to be disheartened, as there are provisions of home insurance for renters too, known as renters insurance. This will help you protect your belongings at the rented place concerned.

Home insurance in India

When compared to health insurance or life insurance, the knowledge and awareness regarding home insurance is relatively low in our country. However, it is very relevant and crucial to maintain a trustworthy home shield insurance to ensure financial protection against unprecedented losses and damages to the house buildings and its contents as per the policy terms.

With the booming real estate market, this particular insurance sector is still developing and gaining rapid popularity, especially due to the implementation of newer mandates and regulations regarding home loans. This trend is attracting insurers from various places and encouraging severe expansion, especially in Tier 1 and 2 cities, involving considerable sector growth.

Home shield insurance exclusions

A standard home shield insurance offers protection coverage for your housing property from various unexpected damages, risks, and losses. However, no policy allows 100% coverage under any circumstances. There will always be certain exceptions based on the terms and conditions of the chosen plan concerned.

You must be aware of these exceptions and exclusions before zeroing in on your chosen policy to make an informed decision and avoid any misunderstandings during any claim settlement.

Standard exclusions in Home Shield insurance

Some of the common exclusions in a standard home insurance plan include the following:

1. Wear and tear:

No home insurance plan offers coverage for damages caused by natural wear and tear or depreciation resulting from regular and gradual deterioration.

2. Intentional damage:

Any damages that have been intentionally inflicted either by the policyholder or any other resident, including vandalism and destruction with the intention of causing harm and damage, do not get covered under any home shield insurance policy.

3. Nuclear accidents:

No home insurance policy allows coverage resulting from damages caused by nuclear radiation because of the tremendous risk associated with it.

4. War and other acts of terrorism:

Any damages that occur as a result of civil disorders, terrorism, or warfare, do not get included under a standard homeowners insurance policy.

5. Sewer backup:

Most home insurance plans do not offer coverage for damages caused by sewerage failures. If you seek such coverage, you need to purchase an additional cover or another separate plan.

6. Mildew and moulds:

No house, however, luxurious it may be, can never be 100% free from mildew and moulds. This usually occurs due to poor maintenance of carpets or regular water damage for a long period. A standard house insurance policy does not allow this sort of coverage unless the moulding occurs due to a sudden unforeseen accidental incident, based on the policy terms.

7. Business activities:

A standard home policy usually does not include any considerable business-related damage or loss like home-based liabilities or business equipment.

8. Sinkholes:

A normal home cover usually excludes sinkhole damages. You need to maintain an additional cover to ensure protection from such hazards.

9. Rodent damage:

A normal home insurance policy does not allow coverage protection from damages caused by rodents and pests.

10. Pre-existing damage:

A standard home shield insurance plan does not offer coverage for damages already existing from before the policy issuance. They always remain out of the protection scope of the plan.

11. Unoccupied home claims:

The insurers usually do not entertain compensation for burglary or theft losses and damages that happen when the concerned home has been left unoccupied consecutively for at least 45 days.

12. Earthquakes and other earth movements:

To ensure coverage from damages and losses caused by earthquakes, volcanic activities and erosion, you need to seek additional insurance coverage.

Specific exclusions

The list of certain specific exclusions in the case of a standard home shield insurance policy includes the following:

1. Manufacturing defects:

Any damage caused due to manufacturing defects of electronic, electrical, or mechanical items does not get any insurance coverage here.

2. Loss of consumables:

This insurance does not cover damage or loss of consumable items.

3. Mysterious disappearances:

Mysterious disappearances or unexplained losses do not get any home insurance coverage protection.

4. Improper handling:

Damages or losses occurring due to improper or careless handling of contents do not receive insurance protection.

5. Radioactivity:

Any damage or loss resulting from radioactivity from any nuclear waste or fuel also remains excluded from the home insurance policy protection coverage.

6. Structural or latent issues:

If there is any damage caused by latent or structural defects in the building, you will not receive any insurance protection.

7. Cosmetic damages:

Damages that are entirely cosmetic in nature and do not affect the overall functionality of the house do not get covered under home insurance.

8. Kutcha construction:

Any property that has kutcha construction is not eligible to receive home insurance protection.

FAQs

1. Can the list of exclusions be modified or removed in a home insurance?

No, the standard exclusions in the case of a normal home shield insurance policy remain non-negotiable. However, you can make your plan customisable to a certain extent by adding suitable riders and add-ons to enhance the coverage extent for certain typical risks. However, discuss all these aspects with your financial advisor and/or insurer before making your final choice.

2. How can I minimise the effect of exclusions on my home insurance coverage?

You can minimise the effect or impact of exclusions of your home plan by observing a proactive approach regarding the maintenance of the property concerned and promptly addressing all potential risks. Regular monitoring and maintenance, instant repairs, and implementation of suitable safety measures can help you overcome damages that your home plan may not cover. Moreover, exploring additional coverage protection options for excluded threats may allow enhanced coverage.

3. What are policy documents required for claim settlement?

You need to submit the duly filled-in and signed claim form; and property documents of the concerned property ( an apartment/individual house); documents to prove your mishap including the FIR copy, Fire brigade report, Police investigation report, legal notices, repair estimate, repair bills, tenancy proof, rent agreement papers, bank account details, Architect’s certificate in the case of total loss stating that the building is uninhabitable.

Conclusion

In the case of home shield insurance, you must consider this list of exclusions to ensure a smooth and hassle-free claim settlement. These exclusions may vary from one insurer to another and according to the chosen policy terms. You must clarify all these details beforehand regarding the scope of the specific plan chosen and then proceed.

You can consider investing in a Bharat Griha Raksha insurance policy, which is the only standardised house insurance issued by the IRDAI.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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