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The Importance of Home Insurance

07 Jan 2016 |By: Team Finalaya

Home Insurance

Image Credits: Carlos Villalobos Insurance Agency Inc.

We only look for insurance policies and realize their value when we lose the things most precious to us – our homes.

Terrorism and vandalism are increasing at alarming rates. Safety at home isn’t something you can take for granted. One moment you’re living a peaceful life, but the very next, you could be robbed, or your house could be destroyed or damaged by a calamity.

Terrorist attack data

Image Credits: statista.com

This is where home insurance against terrorism and natural disaster are extremely valuable.

You may wonder what sort of features and benefits a home insurance policy offers, and whether it’s worth the expense or not.

It provides extensive financial backing in the event of unexpected damage to your home. Not everyone has a huge pile of cash secreted away for a rainy day, and this is where a home insurance policy can lend you and your family a helping hand.

What Does a Home Insurance Policy Cover?

Home insurance policy cover

Image Credits: Banking Sense

Home insurance policies don’t apply to homeowners alone (though if you are one, you should learn more about how home owners insurance will be useful for you in the long run). If you’re renting a house, you can opt for a home insurance for your various household possessions and contents. Home insurance policies not only cover the property but also its contents.

Say you’re paying a home loan and you own the property technically and you don’t have your home insured, chances are that the lending company will take out a home insurance policy against your interests; these are known as forced coverages. These make you pay higher premiums in the event your home gets damaged due to some calamity or the other.

Accidents due to nuclear incidents are also covered by home insurance. Bodily injuries, property damage due to exposure to toxicity from nuclear power plant failures are all factors the insurer will consider. Damage and death resulting from home invasions and acts of terrorism are covered by these policies as well.

Home insurance also keeps you protected against various disasters such as fires, earthquakes, tornadoes, and wars. Most natural calamities are generally covered by your policy. If something is left out, you can always opt for supplemental coverage. Before making the final decision regarding home insurance, it’s vital that you compare various home insurance coverage.

Natural Calamity data

Image Credits: thewatchers.adorraeli.com

In the unlikely event that your house does get destroyed, the insurance company will foot the bills for repairs or even replace the house entirely if necessary. They also cover expenses like relocation, food, and medical bills in times of natural calamities. A good example of this is the Silver Plan Home Insurance, which covers situations such as floods and earthquakes.

What Does a Home Insurance Policy Not Cover?

Wear and tear of personal belongings and damage of property due to age, do not fall under the insurer’s liabilities. Also, you cannot claim insurance for damages done to your property before the policy was taken out.

Damages resulting from sinkholes caused by earthquakes aren’t covered in their terms as well; you’ll need to take up additional coverage for those.

Applying for an online home insurance policy is easy; you can get quotes, use price comparison tools to run a careful comparison, and opt for the policy that suits you best. Your home is one of your most valuable assets, so why not go the extra mile to protect it?

Do let us know how you liked this article by your comments below!

Explore our blog for many more similar articles!

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