Buying a home is the most important investment you make in your life. It is essential to ensure that you have coverage for any damage that may occur because of man-made or natural causes. Also, in the last few decades, our dependence on gadgets and machines has increased exponentially. Almost every household owns at least one device or a machine, while others completely depend on them. From AC, TV, microwave, to refrigerator, dishwasher, home theatre, there are countless options to choose in the market. These gadgets are however costly, and any damage or theft will cost dearly to the owner.
Most of the household furniture, gadgets and appliances etc. come with a warranty from the manufacturer that runs for one year in most of the cases. However, after that period, any damage to them will have to be paid by the owner. You may opt to upgrade the warranties of the appliances you own, but that is not possible with the structure. So keeping every aspect in mind, opting for a solution that can save you from monetary loss is a good idea. A home insurance policy covers a lot of things depending on the plan you choose. Here are a few things that a typical home insurance policy will cover.
There are two aspects to the Home Insurance Policy. The first is cover for damages and the second is cover for the liability.
Cover for damages
Cover for damages is the main aspect of a home insurance policy. It offers financial assistance for an array of damages. These types of policies not only provide cover for the house you own but also for your personal possessions and structures around your home. It will also offer financial assistance for the alternate accommodation you have to take in case your home is not livable.
- Cover for the structure
It provides cover for damage or risks to the physical structure of the home or building that include building, heating, air-conditioning, water and electrical apparatus and more. Please note that the land on which the house stands is not a part of the policy coverage.
- Coverage of additional structures
The home insurance policy also covers the damage to the surrounding buildings that are not attached to the house, for example, garage, driveway, pool, backyard and more.
- Cover for personal possessions or property
The personal properties that you own are always under different risks. From electrical damage to breakage and theft there can be hundreds of different reasons that can put a hole in your pocket. The home insurance policy provides cover for all earthly possessions you have like television, computer, furniture, refrigerator and more.
- Cover for alternate accommodation
In case any living expenses occur due to damage to the structure of your home that makes it unlivable, the insurance policy will provide you cover for the money you spend on alternate accommodation. Please note that you have to keep all the receipts of any expenses that have occurred during the period of temporary accommodation to file a claim.
Cover for liabilities
The home insurance policy provides cover to the homeowner for any liability that may arise because of the bodily harm or damage to the property of a third party. The damage need not occur inside the house.
- Liability Cover
It is one of the most crucial aspects of the home insurance policy. It saves you from the legal liabilities which may occur because of the damage caused by your home. If someone gets injured in your home or someone else’s personal possession gets damaged on your premises or damaged because of something under your possession, it will be covered under this section. For example, if someone’s car gets damaged because a tree located on your premises fell on it, the cost of repair and legal charges will be paid by the insurance company.
- Coverage for Medical Payments to Others
The medical expenses occurred because of the injury, or bodily harm that happened at your premises to a third party will be covered by the home insurance policy provider. Some of the examples are:
- Someone breaks a bone while playing on your backyard.
- Someone falls down from the stairs in your home.
- Someone falls down while walking on your driveway.
Some may think that home insurance policies are not important as they have warranties for everything they own, but it is not true. There are many aspects that warranties cannot cover such as theft. Also, homes do not come with any warranty. Depending on what you own, it is important to have a comprehensive home insurance plan. Please read what all is covered under the policy of your choice before making the final decision.