Many insured consumers may be in for a nasty surprise for wrongly believing that they enjoy blanket cover from their insurer. The reality is however that their cover is limited to that specifically agreed with their insurer.

The cover usually relates only to physical damage sustained to an insured object, meaning that, unless otherwise agreed, any consequential loss stemming from the damage to an insured object is excluded. Consequential loss is best described as an indirect loss, not related to the value of an insured object.

Guest : George Herbst –an Insurance Law expert and Director at Barnard Inc