What is home insurance?
In general terms, it is a cover for your house against theft, fire and storm damages. If anything from the above mentioned events happens in your house, the insurance company will give you a specific amount to help you in your loss.
In a normal homeowner’s insurance policy there are 5 types of coverage, which are:-
- Main structure –
- Additional structures –
- Contents –
- Liability –
- Loss of use –
In this type, the structure of the house is insured and a specific amount will be paid against the repair or replacement of the structure.
Any other outbuildings and decks come in this category. Any other new structure should be added in this category to be considered for insurance.
The components inside the house are insured in this category of kindlustus. However, they do not cover expensive belongings like jewellery and collectibles, but it can be separately insured.
In this type of insurance, any damage caused to someone else’s property is covered under the stated policy limits.
Any house that is going under repair is not usable by the owners, and therefore another dwelling for the family till the repair is complete will be covered.
It is always important to choose the right home insurance policy. Here is a step by step guide that will help you choose the best option of home insurance policy suitable for you:-
Step 1:- home replacement cost
First step is to find out your home replacement cost. The main concern here is the insurance should cover the cost of rebuilding your entire home if it gets destroyed by any mishap like fire or storm. Insurance companies have their own softwares that will help you calculate the cost.
Step 2:- replacement value of personal property
Next step is to find out the replacement value of your personal belongings. The main components like furniture, appliances and clothing are included. These things are as important as a shelter over your head. For any other expensive belongings like jewellery, furs etc there are other insurance plans with limited coverage.
Step 3:- liability insurance
Liability insurance may not sound as important as any other part of it, but for example if someone slips and falls on your stairs, you can be sued by that person. Liability insurance will cover you from these kinds of damages. This insurance covers the legal fees and settlement involved.
Step 4:- additional living expenses
After the basic necessities, you should always take care of your additional expenses. For example, your house is under reconstruction because of some damages due to fire then this insurance will cover your hotel rents or other apartment. There are many clauses included in this insurance, be sure to read and then sign.
Step 5:- quotes
One should evaluate all their choices before their final judgement. Research for several insurance companies and get their quotes. Then compare each of them and decide which one will be more suitable for your needs.
Read and understand all the specifications, clauses and exceptions before you sign the final contract.
James Patrick is an experienced blogger and he often writes articles on finance and kindlustus (insurance). You could also visit their website, https://osta.seesam.ee/kodukindlustus/ to get more info on the types of protection covers that they offer.