Whether you own a home of your own or are in the market to buy your first home, you have opened this article to find out more about homeowners insurance. In this article I will briefly go over the term homeowners insurance and what it means to you as the consumer. Ones home is usually ones biggest asset, and looking after ones biggest asset should be your top priority, because unlike, an expensive painting, or a sports car, your home is your place of refuge and shelter, and so should be maintained and protect, to keep you and your family safe. Homeowners insurance is a broad term which usually covers three aspects of your property.
Building insurance is the insurance of the actual building, and all other permanent structures on the property, such as the garage and the pool for example. It also covers all the permanent fixtures of the home, such as the geyser, toilette, hand basins and baths, as well as light fixtures and taps. Another type insurance which falls under the bracket of homeowner insurance is household insurance. Household insurance is the insurance of all possessions within the house, these includes things such as appliances, personal possession such as clothing or jewellery or valuable items such as expensive paintings. And then lastly another type of important insurance which falls under the umbrella of homeowners insurance is liability insurance, which is the financial cover one takes out in the case of someone injuring themselves on your property.
What type of coverage can you expect under each kind of insurance?
Each insurance company is different and each will offer the customer unique packages which may include certain benefits, such as cash back bonus if the client does not claim over a certain period of time. So I will just give you a generalised version of what each type of insurance entails.
Broadly speaking building insurance is the insurance of the physical structure you call home, in the event of an explosion or fire or some electrical problems which has caused damage; water damaged caused by floods, or over flow; damage caused by natural disaster; as well as damage caused by impact.
Household insurance protects all of your household contents or at least the household contents which have been insured, against theft or damage.
Liability insurance covers you in case someone tries to sue you for injury incurred on your property.
These three categories all fall under homeowners insurance. Some people will take out insurance under all three categories, while other people may just have one thing insured. Before deciding on a company, do your research and get as many quotes as possible to which company is offering you the best price for the cover you are looking for. Do not fall into the trap of taking the first policy which comes your way, and you can save yourself lots of money in the long run whilst still keep your valuables insured.
