Home insurance is a type of property insurance that covers residences. It is also known as homeowner’s insurance (HOI). This is an insurance policy that combines different personal insurance protection. Additionally, homeowner’s insurance provides financial protection against disasters. A home insurance policy can insures the home itself and also the things inside the home. The homeowner’s insurance policy is a multiple purpose policy, which includes both property and liability coverage with an indivisible premium, where a single premium is paid for all risks. This policy covers both damage to one’s property and liability for any injuries and property damage caused by the owner or members of his/her family to other people, it may also include damage caused by household pets. USA uses standardized policy forms that divide coverage into several categories. The limits of the coverages are typically provided as a percentage of the primary coverage, which is coverage for the main dwelling. The homeowner’s insurance cost normally depends on what it would cost to replace the house and which additional endorsements or riders are attached to the policy.
Life insurance policy is a form of insurance that can be tailored to protect an individual’s home against damages to the house itself or to the possessions in their home. you can purchase home insurance only for the structure/building of your home, or the contents inside the home, or both.The whole concept of buying a home insurance is for securing your finances at the time of calamities. If your home gets damaged due to any natural calamity you have our financial back-up to tackle the expenses for repairs and renovation. Home insurance helps you dealing with such expenses so that you beloved home is always secured. It also complete coverage for any damage to the home or its contents from natural calamities and manmade events.
in case you have opted for coverage of the structure only, then the insurer will only bear the cost of replacing or reinstating or repairing the structure in case of a calamity. if you opt for a cover for contents and belongings, the insurer will bear costs if there is damage to household contents, appliances and electronics.
Why I need a home insurance policy?
You need home insurance for the same reason that you need insurance for yourself or for your car; it is precious. Any damage to it can have drastic emotional and financial implications. having a home insurance policy will at least take care of the latter. here are a few reasons why you need to have a home insurance policy:
- Natural disasters
A robust home insurance policy will protect your house from all sorts of natural disasters or “acts of god,” such as earthquakes, typhoons, cyclones, floods, landslides, etc.
- Man made risks
Despite the use of latest safety gadgets and increased security in the housing complexes, the risk of manmade threats such as thefts, robberies, terrorism, riots, etc. are very real. While even the best home insurance coverage may or may not offer default protection against all such events, you can always ask for the protection as an add-on.
- You will need cover regardless of where you live
Even though you might be renting flat or an apartment, or might be living in a housing society, you will still need house insurance. For example, if you are living in a housing society that includes insurance in your leasing contract, you may not have protection against “acts of god”, and hence, will need home insurance policy to get cover against the natural calamities, not to mention if the geographical area you live in is prone to robberies, it might be time to get this insurance.
- Everything is valuable
An insurance for your house will usually cover two things; the structure of the house and the contents within. most of us have items that hold sentimental or artistic value, such as inherited jewellery or artwork. to make sure that what holds meaning to you is insured, read the insurance policy documents carefully, and consider opting for some add-on benefits.
Nowadays due to climatic conditions like cyclones, storm & flood pose for a high occurrence. Whenever such natural calamities take place they tend to destroy trees, assets and vehicles. Home is our most valuable asset which needs to be protected. Disasters can be scary and stressful, which can make trying to list damaged property for a claims form even more challenging and having your belongings already documented in your home insurance can be a huge relief at times like these. The whole concept of buying a home insurance is for securing your finances at the time of calamities. If your home gets damaged due to any natural calamity you have our financial back-up to tackle the expenses for repairs and renovation. Home insurance helps you dealing with such expenses so that you beloved home is always secured. It also complete coverage for any damage to the home or its contents from natural calamities and manmade events. Also theft or burglary of property and valuables at the insured premises if the homeowner is away. The valuable articles likeall silverware, jewellery, and costly electronic gadgets, computers are covered. Customers get benefited with quick service if they have an insurance policy. There are some specialized form of home insurance such as fire insurance, earthquake insurance, flood insurance in which property is insured.
Factors like the structure of the house, age, type of roofing, wiring and presence of a garage or another out-building can affect the premium of the house insurance. The older the house is, the more you would need to pay to insure it. the materials your house is made of can also affect your premium amount. installation of protective devices in your home like smoke detectors, fire alarms, burglars systems, etc. can also help bring the premium amount down as these devices contribute to the safety of the house.Everyone needs to purchase a home insurance policy to protect their personal property and home. Even those who live in a rented house need insurance cover to protect their furniture and other personal property. remember, the better your insurance coverage is, the less you have to pay out of your own pocket in case of an unfortunate event.