The purpose of purchasing home insurance is to protect your property against accidents like theft and loss of valuables. As most people spend their hard-earned dollars to attain property ownership, you will want to buy home insurance to protect your home in the event of fires or flooding. The maintenance cost, in addition to the loss of the property, could cost you millions in just a matter of minutes. Don’t be penny-wise and pound-foolish and not buy home insurance.
1. How is home insurance calculated?
Every home insurance provider is different and costs can vary from hundreds to thousands of dollars. Generally speaking, home insurance depends on the building area of the property; the larger the area, the higher the premium and the sum assured. For properties over 25 years old, village houses or homes that are relatively far, the home insurance provider may increase, up to double, the standard premium as it bears a greater risk.
2. What is covered under home insurance?
- Home contents: floods or fires in his/her home or neighbours’ home, a burglary that results in damage or loss of furniture in the insured home, alternative accommodation fees if the home is unfit to stay in after the accident.
- Personal liability: medical expenses related to an injury caused by flooding, fires or home accidents.
- Third-party liability insurance: this is the most important coverage under home insurance. For example, imagine that windows from the house fell one day. If there was no one on the street level, the owner would only need to pay a small amount of money for cleaning and to repair the window. However, if there were people on the street and the fallen window had caused damage to surrounding properties, serious injury or even death to passersby, the victim’s claim might be substantial and selling the house may not be enough to compensate the damage caused.
3. What to pay attention to when making a claim
If an accident, like a typhoon, occurs, and there is damage to the home’s contents, the policy holder should immediately take a photo of the scene and damage and inform the management office of the event for their record, this will help expedite the process claim from the insurance company. If a burglary happens, in addition to taking photos and notifying the building’s management office, the accident should be reported to police as soon as possible.