HOME INSURANCE DETAILS

Home insurance (also known as Buildings Insurance) protects you financially against loss or damage to the actual physical structure of your home – as well as to any permanent fittings in your house, including things like built-in cupboards, kitchen units, toilets and baths.

Home Insurance is a property insurance which covers private homes, buildings and contents. To begin, home insurance, sometimes referred to as “hazard insurance” or simply “home insurance,” is property insurance designed to cover private homes and their contents.

Home insurance is a multi-line policy , meaning that the premiums, or regularly scheduled payments made to the insurer, cover both property and liability insurance. The premium is usually determined by the replacement cost of the home and its contents.

Your home is probably your single largest investment and your home loan, if you have one will be secured against it.

Now imagine if you were uninsured and your home burnt down; not only would you have lost your biggest asset, you would still be faced with paying back your mortgage in full.

Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance.
You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.

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There are three major reasons to buy home insurance:

·         To provide property coverage Home insurance covers the physical structure of your home and your personal property if it gets damaged or destroyed

·         To provide liability coverage If someone who isn’t covered under your policy is injured or killed, or their property is damaged or destroyed while they’re on your property, your home policy will cover your personal legal responsibility. This coverage extends to cases where damage or injury happens adjacent to your property, such as when the limb of a tree on your property falls on a parked car on the street.

·         To satisfy your mortgage lender - To get a mortgage from a bank, most lenders insist you have insurance as long as you have a mortgage; you also have to list the lender as the mortgagee on the policy.

Home insurance pays for losses and damage to your property if something unexpected happens, like a fire or burglary. However, it’s usually a good idea to do your own research about how much home insurance costs. You can shop separately for home insurance, and choose the provider and plan that is right for you.

When you have a mortgage, your lender wants to make sure your property is protected by insurance. That’s why lenders generally require proof that you have home insurance. If you  don’t have insurance, your lender is allowed to buy it for you and charge you for it—but your lender must give you advance notice. If your lender buys insurance on your home because you did not keep up your home insurance, that insurance may only cover the lender, and not you. It also may be more expensive than what you could buy on your own.