Home Insurance: An easy guide for Home owners

It’s a lovely feeling to have your own house. Have you, on the other hand, taken all precautions to safeguard it? Simply securing your door does not ensure that your home is secure. You can’t control a lot of other things, but in case of Home Insurance you are safe.

Getting a house insurance policy is an important step in protecting your property. The majority of us don’t know how important it is to get home insurance until it’s too late.

What is Home Insurance?

Home insurance is a type of property insurance that protects a person’s home and personal belongings from loss or damage.

The coverage normally covers interior and exterior damage, as well as loss or damage to personal belongings and injury sustained while on the premises.

Every home insurance policy has a liability limit, which defines how much coverage the insured has in the event of a mishap.

Homeowners insurance isn’t the same as a house warranty or mortgage insurance.

Types of Home Insurance:

Knowing the basics of home insurance coverage is essential whether you’re purchasing your first homes insurance policy or looking to upgrade your current policy. You should be aware of the many types of home insurance accessible to you before making an informed decision.

The following coverages are included in a conventional homes insurance policy:

  1. ‌Dwelling Coverage: ‌Dwelling coverage is the basis for all homeowners insurance policies. It protects your home’s structure, such as the floors, walls, built-in appliances, and ceilings, as well as any adjacent structures.  It also covers a range of risks such as fire, hail, theft, and vandalism, and can assist you in rebuilding your home if it is completely destroyed (up to your policy limit).
  1. ‌Contents Coverage: Home Content Coverage, as the name implies, covers the contents of your home. Furniture, moveable and immovable electronic devices, and valuables such as jewellery.
  1. ‌Personal Liability: ‌Personal liability insurance covers costs if a guest is injured at your house or elsewhere, as well as property damage coverage if your property is harmed as a consequence of a covered accident.

Benefits of Home Insurance:

  • Protection against Natural and Man-Made Disasters

Natural disasters such as floods, cyclones, and earthquakes can cause significant property and human loss. A house insurance coverage will cover the loss or damage to your home as a result of such events. Aside from natural disasters, a house insurance coverage also covers damages caused by man-made risks like fire, theft, and vandalism.

  • Temporary Living Expenses Compensation

A home insurance coverage will cover your interim living expenses until your home is restored or rebuilt if your home is deemed inhabitable due to significant damage.

  • Compensation for Asset Damage/Loss

A house insurance coverage covers assets such as clothes, ornaments, technological appliances, furniture, and so on, in addition to the construction of your home.

  • Protection Against Liability

A house insurance policy also protects you from any liability that may arise as a result of accidental damage to a third party member while on your property.

Best and recommend choice:

‌Policy for Standard Fire and Special Perils:

As the name implies, it provides coverage against certain unique hazards and fire outbreaks, and it is offered by every major insurance carrier. 

This coverage is available to both homeowners (for their own home) and tenants (for their rented home). For this policy, the total insured is determined as Building – Cost of Reconstruction (exclusive of land value).

A standard fire and special perils policy protects the insured home from the following losses and damages:

  • ‌Natural calamities like lightning, fire, volcanic eruptions, bush fire, forest fire, earthquakes, storms, floods.
  • ‌Damages caused by explosions/implosions, anti-social acts perpetrated by humans such as strikes and riots, and harm perpetrated with malice.
  • ‌Direct contact between rail and road, as well as vehicle, results in damage. This policy does not cover damage to the insured house caused by your own vehicle.
  • ‌Water tanks, pipes, and machinery were damaged by bursting or overflowing.
  • ‌Rockslide and landslide are two types of subsidence.
  • Theft from automatic sprinkler installations has resulted in significant damage.

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