Home Package Insurance
   
Q : A client arranged a home package policy, which cover his/her property at the insured premises for damage. If he/she scratched the laser disc, is policy liability attached to such loss?
A : There are numerous Home-package policies in the market with different coverage. Whether the scratching of laser disc fall within the coverage depends on the following conditions :-
1. Whether the standard policy exclusions avoided the risk of "Scratching" damage,
2. Whether the value of the disc fall under the policy excess of the policy or
3. Whether the policy specifically excluded laser disc from the insured property.
   
   
Q : A client effected a Home-package policy with the sum insured at HK$100,000.00. However, he/she added/replaced some items within the policy period and the total value increased up to HK$120,000.00. Is it necessary to inform the insurance company immediately? Is there any condition which required the insured to inform the insurance company once the value of the insured items exceeded a certain figure?
A : It depends on the kind of home-package policy arranged. If it is a "Total Value at Risk" policy, the insured should inform the insurance company immediately to increase the sum insured once the value of insured properties increased. Otherwise, any claims payment would be computed on average basis. If the policy was arranged in "First Loss Basis", the insured need not inform the insurance company when the value of the insured properties increased. Once a claim occurred, he/she would be fully compensated up to the sum insured even if it were a total loss.