Homeowners investing in real estate should consider the crucial step of purchasing home insurance. This financial commitment protects in times of property crises. This article clarifies the definition of home insurance, outlines its coverage types, specifies what it covers, and addresses whether it’s a worthwhile investment.

What Does Home Insurance Cover?

Homeowner’s insurance is property insurance providing financial protection against losses and damages on the insured property, including assets. It also offers liability coverage for mishaps occurring on the property or within the house, requiring a premium payment. You can use a home insurance calculator to calculate the amount of premium that you would need to pay.  Claims are subject to terms and conditions set forth under the home insurance policy. *

Home Insurance Coverage Plan Types

Let us take a look at the types of home insurance.

  • Standard Fire And Special Perils Policy: As the name implies, this policy can offer protection against certain natural disasters and fire-related damages. Any explosion-related damages, such as riots and malicious intent-related damages, are covered by disturbances brought on by humans. Claims are subject to terms and conditions set forth under the home insurance policy. 
  • Home Structure/Building Insurance: This policy safeguards permanent fixtures on the property by offering coverage against potential structural risks and damages. These could be ceiling fixtures or fixtures in a kitchen or bathroom. Claims are subject to terms and conditions set forth under the home insurance policy. *
  • Public Liability Coverage: Damage to the Insured Property is provided by Public Liability Coverage. Claims are subject to terms and conditions set forth under the home insurance policy. *
  • Personal Accident: This type of insurance covers the insured person and their family if the insured person passes away or becomes permanently disabled, regardless of where these events occur. Claims are subject to terms and conditions set forth under the home insurance policy. *
  • Burglary And Theft: This covers and pays for any valuable things or furniture taken from the premises. Claims are subject to terms and conditions set forth under the home insurance policy. *
  • Contents Insurance: This type covers what a person owns and decorates their house. This policy covers documents, home appliances, portable equipment, and technology. Claims are subject to terms and conditions set forth under the home insurance policy. *
  • Tenants’ Insurance: Since tenants do not own the land, it makes more sense to look for a policy that protects their personal belongings on the property rather than the building itself. This policy financially covers tenant belongings. Claims are subject to terms and conditions set forth under the home insurance policy. *
  • Landlord Insurance: Landlord insurance gives them the financial stability they need in case of a loss of rent and public liability. Landlords are accountable for the maintenance of their property. Claims are subject to terms and conditions set forth under the home insurance policy. *

What Isn’t Covered By The Plans Listed Above?

Now that we know the coverage provided by home insurance, we also need to consider what is not. The following doesn’t apply to homeowner’s insurance:

  • Purposeful destruction of assets.
  • Losses brought on by normal wear and tear.
  • Losses and damages brought on by catastrophic occurrences like nuclear weapons and war.
  • If the property is unoccupied for an extended period and losses and damages occur, a homeowner’s insurance policy will not cover these costs.
  • Cash losses, losses on antiques, and losses on collectables are typically not included. For a higher premium, people can purchase optional features that offer additional financial security against the final two categories of valuables.

Is Home Insurance Worth It?

When considering this question, homeowners should factor in the costs of buying, building, and furnishing their home, along with potential expenses from property losses or damages. While there’s uncertainty about such charges, homeowner’s insurance, despite periodic premium payments, provides valuable coverage that can be beneficial in the future.

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.