Thursday, 10 August 2017

Everything you need to know about home insurance

What is Home insurance?......

Home insurance is an umbrella term which covers both buildings insurance and contents insurance. Buildings insurance covers the actual bricks and mortar of your property, plus any fixtures and fittings, while contents insurance covers all the belongings in your home.

What does buildings insurance cover?

Buildings insurance usually covers you against damage to your property from the following:
1. Fire
2. Floods
3. Storms
4. Falling trees or branches
5. Vandalism or malicious damage
6. Impact from vehicles
7. Subsidence

What does contents insurance cover?

Contents insurance generally covers your belongings against:
1. Theft
2. Fire damage
3. Flood damage
4. Earthquake damage
5. Vandalism

Now, What is Homeowner insurance?....

Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it. Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people.

What types of coverage do common policies provide?

A standard homeowners policy typically provides the following types of coverage:

Dwelling coverage

Dwelling coverage helps protect the structure, built-in appliances, and a wall to-wall carpet of your house from damage. In the terms of your home insurance policy, your “dwelling” means the entire structure of your home and any connected structures such as an attached garage or cellar.

Other structures coverage

Other structures coverage applies to structures on your property that are not attached to your dwelling. If an unattached structure such as a shed, garage or guest house is damaged, other structures insurance may help cover the associated costs.

Personal property coverage

Personal property coverage protects your personal belongings in your homes, such as furniture or electronics, if they are damaged or destroyed by a covered loss.

Liability coverage

Liability coverage may cover damage costs associated with bodily injuries sustained by guests on your property and other covered expenses that arise as results of negligence. This could include the individual’s medical bills, loss of income, pain and suffering and more.

Loss of use coverage

In the event, you need to temporarily move out of your home due to a covered loss, loss of use insurance will cover additional housing and living expenses that you incur. For example, if you have to move out of your home while it is being repaired or rebuilt after a covered accident, loss of use insurance would cover the cost of a hotel or temporary apartment.

Is Home Insurance Required?

Home insurance is usually optional, allowing homeowners to choose their policy to fit their individual needs. However, individuals whose homes are under a mortgage loan are required by their lenders to obtain adequate coverage for the dwelling, as the lender has a vested interest in the home and wants assurance that any damages accrued by the home during disasters will be covered.

What Are the Differences and Similarities?

Homeowners insurance and Renter’s insurance both exist to protect your personal property. They help prevent homeowners and renters from having to pay the full cost of damages and losses out of pocket. Both acts as liability coverage in the event that someone is injured on your property and both
provide financial assistance if you are displaced from your home. Home insurance covers more than renter’s insurance. In particular, it covers the structure of the building, whereas renter’s insurance only covers belongings. This additional coverage is important for homeowners because, in the event of a disaster, the structure of their home can become damaged. Renters do not need this coverage because their landlords are responsible for insuring the dwelling; renters just need to make sure they have adequate coverage for the possessions and for liability.

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