Standard Policy does not cover:
Materials having design default / workmanship
Goods which are covered under General insurance for the damage/loss
Fluctuation in the exchange rate
Negligence/failure to fulfil the terms of the export contract by the exporter
Under the Standard Policy the risks that are covered are as follows:
The policy will cover for direct damages/losses caused due to lightning, fire, wind storms, tornadoes, hail, vandalism, explosions and theft as these perils or disasters are listed in the policy. But there are certain restrictions on the coverage and deductibles on the policy for people living near the coastline as they are prone to hailstorms.
Theft of Jewellery is also covered for only $1000 to $2000. Higher limits of purchase in the policy should be done if the jewellery is worth more.
If the house is destroyed by fire or fallen tree due to storm and damages the roof then the policy will only cover for the replacement cost and for the structural damages. If the amount exceeds the sum insured then the insurance will only pay for the sum insured and not more. The actual cash value means choosing not to rebuild house but instead get the money for replacement of the house less depreciation. By taking the guaranteed or extended replacement cost policy the person will have extra cash to cover for losses exceeding sum insured.
One should review all the terms and conditions of the policy before purchasing it.