Home Insurance Covers More Than Your Home

by Administrator 6. October 2014 08:11

The most valuable asset and investment of a person life is most likely to be his home. With the rising costs of owning a property, it makes a lot of sense to insure your house and its belongings. It is essential for peace and mind and to ensure that your investment is safe.

When deciding for a home insurance you should make sure that the scheme you select covers your basic needs. You should assess the possible occurrences and catastrophes that can act as a threat to your house so that you can include them in your insurance policy. For example not every policy provides protection against floods and if you happen to live in a flood prone area you should go for a policy that entitles you reimbursement for the losses incurred during a flood.

Depending on the nature of the insurance scheme and the providing company's policies you will get a limited or unlimited cover for your belongings. The important thing to consider here is that the amount you get for your insurance product is evaluated depending on its current condition. The extent to which your belongings are covered depends on the insurance limit.

There are three major types of coverage plans -

Type A – This is the most essential type as it covers the basic structure of your home, including the roof, floor, wall tiles, cupboards, appliances and so on. There is an 'all perils' version of ‘Type A’ policy wherein you can get specific items covered.

Type B
– This covers the external structures that are a part of your home such as fences, garage, a suite, etc. This is particularly helpful in protecting new expensive fences, etc. in flood and hurricane prone areas as floods and hurricanes cause immense damage to external structures.

Type C -This covers all your personal belongings but there still may be a limit to the amount you can get as reimbursement when your belongings are damaged along with the home.

In addition, there are two other types of covers -

Type D – Personal liability that covers bodily injuries incurred at the time of the disaster. The provider pays for the lawsuits filed against you when you are charged with the account of causing damage to other people's property.

Type F – Covers for the medical bills of others that are injured on your property, such as a slip and fall case in your house.

Home Insurance is essential and very beneficial. Every home owner should research and select an insurance plan that best suits their needs.

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