Home insurance is a must-have for homeowners mainly because of the protection provided by the policy against the substantial losses borne of natural disasters, accidents and thefts, among others. But not all home indemnity policies are created equal to your unique needs and wants so insurance brokers must be consulted on the matter before any final decision is made.
Why Buy
Homeowners are well advised to purchase home indemnity policies for the following reasons:
• Satisfy the requirements of your lender. Banks, among other mortgage lenders, require home loan applicants to secure insurance as protection of the lenders’ investments.
• Protection against lawsuits. Home insurance policies can cover injuries sustained by individuals while walking up to your house or while staying in it. Ask insurance brokers from the likes of our company for advice on coverage.
• Protection from loss caused by natural disasters, thefts and man made accidents. Your house can be insured against natural occurrences like floods, earthquakes and tornadoes as well as losses from thefts, burglaries and explosions, among others. Basically, the insurance company will shoulder all or part of the total costs for the repairs and/or replacements of the house and/or the contents therein.
The premiums paid for the home indemnity policy can pay off when the house and/or its contents sustain damages, losses and wipe-outs.
How to Buy
As insurance brokers know, however, one-size-fits-all standard home insurance policies are inadvisable although these also have their merits. Keep in mind that your needs and wants in coverage will be unique in comparison with your next-door neighbors. For example, you may want wider coverage to include the contents of your house – your collection of valuable artworks are displayed on the walls – instead of just the structure whereas your neighbor is happy with basic coverage.
Your first step then is to consult with one of the most reliable insurance brokers in your area to discuss your options. Your main options include:
• Building insurance refers to coverage on the structure itself in the event of damages/losses caused by fire, flood and other reasons. Be sure to check the coverage, clauses and costs of the insurance to avoid inconveniences in the future.
• Contents insurance pertains to the coverage on the contents inside the main building and its adjacent structures (i.e., sheds and garages). Again, check the particulars.
You can choose to have just one of the two coverage types or both coverage depending on your needs and wants in the product. Remember that the coverage and costs in premiums will depend on location (i.e., flood-prone areas have higher premiums for flood coverage).
You should also look into the sum-insured aspect with your insurance brokers because your premiums will be affected. The higher the sum insured, the higher your insurance premiums will be. The implication: If you are paying higher than the actual market value of the property, you are paying for too much; if you are paying lower, then you are not sufficiently covered.