Your home is your fortress, no matter if it is a one-bedroom flat or a five-bedroom personal building. Even the thought of it getting damaged brings horror and despondence. Any unwanted event can bring your castle down or make it uninhabitable. Imagine if there’s a fire or a storm or if you were the target of burglars. Would you be able to pay for the repairs or replace invaluable stuff in your house. So it’s highly significant that you ensure that your house is protected, in case any ill fortune happened to fall upon you.
Our Home Insurance article here is intended to help new home buyers in understanding the nuts and bolts of their home insurance.
What types of Home Insurance covers are available?
Mostly there are 2 kinds of home insurance: Buildings Insurance Cover and Contents Insurance Cover.
Buildings insurance covers your home’s structure, which means the walls, roof and windows are all included. The permanent fixtures are also mostly covered, such as the fitted kitchen and the bathroom suite. So such an insurance covers costs related to damage to the exterior or interior of your house, which means you are protected from damages due to fire, storm, lightning, hurricanes, vandalism etc., so tht your building structure can be repaired or even completely rebuilt. Earthquakes, acts of terrorism, floods etc. are generally not covered and may require that you pay up an additional premium for this extra protection cover.
Contents Insurance covers loss or damage to your personal belongings within the house. It covers clothing, electronics, appliances, furniture and most of the other contents of your home if destroyed in an insured disaster, it also covers contents damaged or lost even when they aren’t on your property, such as those at an off-site storage locker.
What should be covered?
People often make the mistake of covering the house’s market value, which results in them being over-insured and paying too much for their cover. Ideally the amount you cover should be based on the rebuild value of the property, so in any event of complete damage to the property, how much would it cost you to rebuild your house from scratch.
So one should not focus too much on the location of the house and factor in the area property prices, but rther think about the cost of materials, labour and architects. But it’s highly pertinent that your house insurence policy covers the cost for you to stay somewhere else, while your house is being rebuilt nd is uninhabitable.
For contents, it’s important that you are not under-insured, so make an effort to include all items in the house, including your clothing and accessories. It’s best to make an inventory of all your priced possessions, like computer, camera, iPod, carpets, curtains, jewellery etc, all this can actully add up to quite a bit of money, sometimes actually more than you think you have.
Sometimes, it helps to get an “off-premises” coverage added to your home insurance policy, so you could get a claim for say lost jewelry, no matter where in the world you lost it. Though there may be a cap on the amount of money that your insurer will reimburse you.
What is a Tenant’s Liability Insurance?
Tenant’s liability insurance covers the homeowner for damage to the structure of their property by a person who is renting it out. Most contents insurance policies do include a tenant’s liability insurance but your landlord may insist that you have this kind of cover if you are renting a property.
If you are a landlord, just make sure that you advise your insurance provider that you will be renting your property out to a third party as this may affect the type of policy that you need to take out, or the price of your premiums. We recommend that you take this type of a cover as damage to the structure of the building itself may end up costing more than the deposit given to you by the tenants.
What about insuring an empty home?
A home which is left unoccupied for more than 30 days in a year, is normally not covered un dera a standard home insurance policy. There are several circumstances that might leave your house unoccupied for some time, like, if you moved to a new house but have not sold your existing property yet, or if you were switching tenants or you just inherited a property but re waiting for possession. The risks and dangers of damage and theft actually increase with an empty and unmaintained and unattended house. You can choose to go for Unoccupied Home insurance to cover all these risks, plus your liability if someone is injured on your property.