Importance of Home Insurance Policies | Prevention from Future Damages



How to select Home Insurance Plans?

Home insurance is an important decision to be taken by every family to ensure safety for their property from damage caused by Natural calamities or human activities.

People usually misunderstand the importance of Home Insurance because they consider it to be an investment with no returns. The problem with the people is that they believe that there is nothing bad going to happen for which they have take precautions.

But actually, by avoiding to pay insurance money, they are devoid of prevention from future damages which would involve many times more money than required to pay insurance instalments.

Home Insurance of a Residence
Home Insurance of a Residence

How do Insurance companies function?

The word “insurance” means “protection against future loss”. Insurance companies make insurance policies which would benefit people.

Insurance companies take a certain percentage of money depending on the size of the property every year. You have to pay certain amount of money in instalments every year.

The amount for the instalments also depend on the policy chosen by the you. Make sure that you choose Insurance plans that would meet all your requirements (needs and preferences).

Select a plan that will give your money’s worth and would also secure your house from the unwanted calamities causing damage.

Home Insurance can be classified into following four categories:

  1. Structure of the property
  2. Personal items of the owner
  3. Protection from liability
  4. Costs related to living

There are certain Home Insurance companies that provide home insurance plans to the mortgage clients. These plans have to be carefully studied before investing in them. These companies do not offer very good plans since they have policies that only insure the house and take no consideration of the belongings. Therefore, before selecting any policy, make sure it meets all your requirements that you are looking forward to.

Typical Damages not included in the Insurance plans:

  1. Damage caused by floods
  2. Damage caused by Earthquakes
  3. Mold
  4. Acts of war (human activities)
  5. Damage of property due to overaging of the house or lack of maintenance

Typical damage included in the Insurance plans are:

  1. Damage caused due to fire
  2. Tornado or Hurricane
  3. Hailstorm
  4. Theft

For example:

You have selected a certain policy to insure your house. You must always keep in mind that these insurance policies are meant to cover damage caused by sudden or accidental occurrences (for example; fire or storm).

Let’s take an example of the storm…

Suppose there is a leakage in your house during rains. The leakage is caused due to the crack somewhere in the walls or ceiling of your house from quite a lot of years. The damage which is caused due to the leakage of water from the cracks in the walls or ceilings is not included into the policy plans.

This is something you have to be careful about. Whereas if the leakage has been caused by a sudden hailstorm; it can be insured.



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