What you Need to Know
A home is most likely the major investment that anyone could have. Home insurance also known as domestic insurance is an insurance package designed for homeowners and tenants.
It protects your house against damage as a result of fire, explosion riot, strike etc, or theft of possessions such as electronics and furniture.
A home insurance package covers losses in two main ways:
1. Overall damage of the entire structure/building.
2. Damage/loss of personal possessions.
Generally, homeowner’s cover pays for any renovations or remodelling if you house is damaged by natural disasters mentioned in your policy.
In the case of personal possessions, this policy compensates 70-80 percent in cost of the items lost or damaged. It is wise to give the actual values to be covered because that is what will be used to compute the claim in case of any loss or damage.
What to Consider when Buying your Home Insurance
While the price of the policy is one of the key factors to consider when purchasing a home insurance cover, there are other key areas which will affect your choice of package:
Contents in your home
This includes all you assets and possessions that are kept within the house. E.g electronics and furniture. Before selecting a home insurance package, ensure you have an accurate estimate of all your assets and possessions that are within your house.
If you keep specific valuable items in your house, ensure that your insurance cover is high enough to cover the costs of these items in case of any damage or loss. These items could be musical instruments, cameras, jewellery or sporting equipment.
It is advisable to make a list of these items in your home insurance policy together with their costs for appropriate compensation if need be.
Location of your house
Generally, houses that are located near areas that are considered prone to accidents such as in the coastlines tend to attract a more heavier domestic insurance costs. This is because these areas have higher chances of experiencing catastrophic weather conditions or accidents that eventually result in claims by the home owner.
The location of your home will also assist you in choosing the type of insurance package depending on the type of accident that are prone to your area of residence, eg floods. In this case, if your house is located in a flooding zone, it is more likely that you will need to insure your property against flood in case any occurs.
Home insurance covers the costs of damages to your property as well as any loss in personal possession. The cause of accident or loss of personal possession is expected to have occurred naturally before the insurance company pays any claim.
However, sometimes accidents occur at home that end up causing serious damage to your valuable possessions. For instance, think of what will happen when water spills on your most expensive camera.
It is upon the claimant to pick an insurance package that will compensate his/her property in case any of any of these accidents.
Away from home cover
This package covers the costs of damage or loss incurred on your property when carried away from home. Equipment such as music instruments or sporting equipment can be damaged or lost in carried away from home.
If your home insurance package includes this cover, then you are subjected to compensation as outlined in the agreement.