Property insurance

I would like to clarify that in the unfortunate scenario presented by Enzo Cachia (The Sunday Times, April 6) it is general practice that a home insurance policy should in fact cover one's loss even if it originates from a neighbour's home. Thus, if your neighbour's gas cylinder explodes and your property sustains damage, your home insurance policy should compensate you for your own loss.

Conversely a home insurance policy would normally also include cover against one's own liability to pay compensation for loss or damage caused to neighbouring property arising from one's own property as well as legal liability for third party death or bodily injury. So if your own gas cylinder explodes and causes damage to neighbouring third party property, your home policy will respond to the damage sustained by your neighbours if you are liable at law.

These are general observations and it should be appreciated that the extent of protection actually provided by one's insurance policy depends on the policy wording provided by one's insurer. It is therefore important that one does read one's insurance policy and ensure that the protection one has purchased meets one's concerns. Any queries should be put forward to the insurer or broker to avoid any misunderstandings at the time of a claim.

While on this point, I must also mention that the extent of indemnity or compensation one is entitled to under one's insurance policy is subject to the sums insured and limits applicable. It is imperative that you ensure that the sums insured you set for your buildings and contents are correct and in line with the insurance policy requirements. Under-insurance is a very common problem faced by many insured at the time of a claim and could have very serious financial consequences.