Your home is special, it is the place where you sleep, cook and socialise with family, but it is also the place where you have all your belongings. As a homeowner, you are vulnerable to property damage, theft and loss, which is why it is crucial to have home insurance so that you can rest easy knowing that your property is protected.
Are there Different Types of Home Insurance?
Actually, there are three types of home insurance that you can consider. You will need to know what each one of these are and what they protect.
Homeowners Building Insurance
The first type of insurance is building insurance. This type of insurance covers the building structure of your home against damage or loss caused by theft, fire or natural disasters.
This type of cover can also be extended by some insurance companies to include other structures on your property like greenhouses, garages and swimming pools as well as any permanent structures around your house like toilets, fitted kitchens and baths.
There are also some insurance companies that will additionally offer Personal Liability Cover, which protects property owners from third party claims. This type of cover will offer financial protection in the case where a third party may claim against a homeowner for injury, illness or accidental death that occurs on their property as well as protection for accidental damage or loss to a third party’s property.
Home Contents Insurance
Homeowners insurance protects your structure, but it does not protect the contents of your home. You will need to get home contents insurance to protect your items.
Home contents insurance covers your household goods against loss or damage caused by fire, theft, burglary, malicious damage or natural disasters.
Your home contents insurance will protect items like home appliances, furniture, clothing, electrical goods and so on. However, fitted fixtures like taps or a carpet that can’t be moved are usually not covered by this type of insurance.
Personal Valuables Insurance
This type of insurance is a separate policy and covers personal valuables that you would usually carry or wear outside the home like jewellery, laptops, phones and so on.
You are able to get specified items and non-specified items. Non-specified items is a policy that will cover a standard list of general items and will pay out up to a certain amount in the case of damage or loss. A specified policy allows you to individually insure your most expensive items like laptops against damage or loss and will pay out up to the amount that is specified in your policy.
Wait…Home insurance is important…keep reading…
Why is Home Insurance Important
Home insurance, of course, offers you financial protection, but there are also other benefits to home insurance.
If your house should get damaged, you are able to get the repairs done in a timely manner and will not have to wait so that you are able to save up the funds that you need.
If you suffer from an emergency covered loss, then your home insurance will offer emergency repair services in order to protect and prevent any further damage to your home.
If you are not able to live in your home due to mandatory evacuation, then your insurance policy will cover your temporary living expenses, but this will depend on whether your insurance claim is approved.
There are some insurance companies that offer a no-claims reward, which is where you will be able to get cash back after a specified number of premiums and when you haven’t claimed.
What Household Cover doesn’t Cover
You need to read and understand the terms and conditions of your cover, so that you know what you are covered against.
If you are unsure about any part of your insurance policy then it is a good idea to speak to a broker or an attorney, so that you can better understand the policy.
The majority of home insurance policies will cover a wide range of accidents, but there are some cases where your claim might be rejected.
Claims that could be rejected include:
- Damage occurring from pets.
- If you run a bed and breakfast from your home, appliances in the rooms will be excluded from household cover.
- Not all theft claims are covered unless violet or forcible entry on the property is visible.
- If there are signs of poor property maintenance which results in damage that could have been avoided.
- Damage to the property from roots and weeds
- If there is a lack of sufficient security in place at the time of your claim.
- If your home was left unoccupied for a significant period of time.
Home insurance is important as it offers you the financial protection that you need in the event of any unexpected circumstance. Home insurance will give you peace of mind as you know you are protected. Without home insurance, you may find that you will have to pay a lot out of your own pocket to replace items, repairs and other such things. You can then save money further down the line with home insurance if anything happens.