When you buy a home, you also need to get home insurance. It can be confusing when you are trying to go through all the options, so we thought we would break down the 5 most important things to know, arming you with all the knowledge you need to make the best choice for you and your family.
There are 2 types of home insurance that you should consider, namely buildings insurance and home contents insurance. The difference between these two is in the name – buildings insurance covers you for damage to the structure of your home while the home contents insurance protects you in case you suffer loss or damage to the contents of your home. Basically, if you took the roof off your house and turned it upside down, everything that fell out would be covered by home contents insurance.
Your buildings insurance policy will cover you for damage or loss that can happen to the physical structure of your house and outbuildings on your property. This includes, but is not limited to, loss or damage caused by:
Your home contents insurance, on the other hand, covers loss or damage to personal possessions and household goods. This includes (but is not limited to):
December is the season for giving (and receiving), so make sure to update your home contents insurance with any valuables you’ve received. You don’t want to come up short and not have your brand-new smart TV covered should anything happen. You don’t want to replace valuable items out of pocket and especially not with a cheap alternative because your budget is now smaller.
In order to know how well you are covered, in case you need to claim, it’s important to check your policy regularly and make updates when necessary. It’s advisable to keep an inventory of your home contents so that if something happens, for example if you are robbed, you will have a reference to check against. Your insurance company will need a detailed list of your home contents so you won’t come up short should you need to make a claim at some point.
Should anything happen to your home that would result in a total loss, your home would need to be insured for the cost to rebuild at the current market value which also include costs like demolition costs and professional fees.
Speak to your insurance company regularly and ensure they are up to date with any changes or security upgrades you have made.
The information contained in this article is for information purposes only and does not constitute professional advice.
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