Let’s face it, insurance can be a very cumbersome topic. Just ask yourself: when was the last time you talked about insurance over dinner? I guess, never.
Regardless of how we might feel about the subject, we shouldn’t just push it aside. In fact, I think it’s about time people discuss about insurance more often. Why? As climates and living environments continue to grow more uncertain each day, it’s important to have a fallback in case things don’t turn out as you planned.
So how does insurance help secure your house in the long run?
For almost everyone, our home is by far most valuable thing we own and some take all of their working lives just to pay for one. If your house caught fire and your property wasn’t insured, you could watch the fruits of your hardwork go up in smoke, literally.
The same goes with valuable possessions like jewelries, paintings, or furnitures. Having insurance can give you a good night’s sleep knowing that your things are protected against burglaries or fires.
There are 2 types of insurance that every homeowner should secure for their house: building insurance and contents insurance.
Building insurance is applied for the actual structure of the building, which includes the walls, floors, fixtures, and fittings. For the newbies, fixtures and fittings are things attached to the house which would not fall off (if ever) it gets turned upside down. A few examples are radiators, carpets, baths, and showerheads.
This type of insurance usually covers damage to your house arising from fire, wind, hail, explosion, aircraft or vehicle crash into your property, smoke, and criminal activity such as vandalism and rioting.
Contents insurance, on the other hand, is used to cover any damages coming from the loss of any items found inside your house. It offers insurance coverage to electrical goods like laptops and mobile phones, white goods, furniture, jewellery, pictures, bicycles and so on.
Be aware that not all damages to your house or its contents are covered by standard issued policies. Among the most popular exclusions on insurance coverage are frost damage, flood damage especially in flood prone areas, subsidence, and “acts of god.”
Typically, homeowners should start shopping around for building or contents insurance at the time you’ve exchanged contracts with the sellers, because some lenders make it a reuirement for mortgage application. However, this rarely happens. Believe me.
When I first bought a house a long, long time ago, I didn’t apply for a contents insurance so when a few pieces of furniture were stolen from my home, I didn’t have an insurer to reimburse the cost of my loss!
I advised my daughter not to make the same mistake, but it took a while before she could get both building and contents insurance, since the fees were so high.
Remember that the insurance premiums will vary for every property. Insurers usually base the premium from the value of the house; the type of house you own; your credit rating; the number of people living in the property; location; and a slew of other factors important for the particular insurer your applying with.Tags: building insurance, contents insurance, insurance coverage, insurance premiums, property