Almost anything can be insured these days. This insurance premiums could really come in handy incase of future mishap.
Let’s then analyse HOUSE INSURANCE!
WHAT IS HOUSE INSURANCE?
HOUSE INSURANCE, also called HOME OWNER’S INSURANCE, is a type of property insurance that covers losses, damages and accidents to a private residence, including furnishings and other assets in the home.
It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, or loss of other personal possessions of the homeowner.
House insurance also provides liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.
What I’m trying to say is that, Homeowner’s insurance provides financial protection against disasters.
A standard home insurance policy insures the home itself along with the things kept inside.
IS HOUSE INSURANCE WORTH HAVING?
It is really a good idea to insure your home and its contents to cover your possessions against fire, theft and other risks, such as accidental damage.
If something happens to destroy or damage your possessions such as home appliances, documents, clothing,etc.
It can cost a lot of money to replace these items, some of which may be essential, this is where the benefit of house insurance comes in.
The insurance policy is a legal contract of indemnity and will put the insured back to the state he/she was in prior to the loss.
IS HOUSE INSURANCE REQUIRED BY LAW?
In the United States of America, Canada, Australia as well as the United Kingdom, House insurance is essential if you own or if you are buying a home.
In the United States, most home buyers borrow money in the form of a mortgage loan, and the mortgage lender often requires that the buyer purchase homeowner’s insurance as a condition of the loan, in order to protect the bank if the home is destroyed.
Likewise, mortgage lenders within the United Kingdom (UK) require the actual cost of rebuilding a property to its current state (should it be damaged or destroyed, i.e. the rebuild value) of a property to be covered as a condition of the loan.
Every homeowner’s insurance policy has a liability limit, which determines the amount of coverage the insured has, should an unfortunate incident occur.
HOW MUCH IS HOUSE INSURANCE ON AN AVERAGE UK HOUSEHOLD?
With the average UK household owning £35,000, protecting it is important and it might be cheaper than you think.
The average combined home and contents insurance policy costs £140 a year in 2021, according to the Money Supermarket. When broken down, that is just £2.70 a week!.
COMMON EXCLUSIONS TO HOUSE INSURANCE
As with most insurance policies, there are always exclusions. The most common are:
- General wear-and-tear maintenance
- Faulty workmanship
- Mechanical or electrical breakdown
However, if I was you, I wouldn’t let these exclusions be a barrier to hinder my house insurance journey.
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