Top 5 reasons for getting a house insurance

House Insurance covers for damages and costs incurred due to a risk occurring in your home. Often people ask – what are the Top 5 reasons for getting a house insurance. The answer is – First – protection of your household goods, coverage for costs involved in the damage, providing for replacements for damages and lost items, providing safety for you and your family and above all protecting your lifelong investments.

Second – A house insurance combines personal insurance coverage, covers for losses due to human negligence or acts of God and covers for contents inside the home – interiors, furnishing, clothing and valuables. It also provides for alternate dwelling in case of a damage. A comprehensive house insurance includes a Fire Insurance policy which protects the house and its contents from costs incurred by a fire (fire damage or fire destruction or relocation in case of fire). A house insurance also provides protection against various risks – such as fire, lightning, windstorm, hail, vandalism, mischief, theft, damage, civil vandalism, breakage, smoke and volcanic eruption.

Third – A house insurance protects the house occupants – either the owner and family or the renters. In case of damage or injury caused to renter, the house insurance also includes liability cover and indemnification for the house owner from costs and damages. One can take a deep coverage for the house even upto 100% so that one’s house is not a complete loss. A guaranteed replacement coverage pays whatever it takes to rebuild the house, even if it is more than the original cost of purchase. This aspect is useful, considering the fact that labour and building costs are rising every day. You can also buy an insurance that has no cap to protect your investment completely. The insurance also ensures that the replacement structure brings your house to comply with current building laws.

Fourth – In case of a damage to the house, an insurance will replace a large part of the damage either through cash value or through replacement. In case the house has been mortgaged and certain payments have been made, the house insurance covers the paid up equity, so that the house owner returns to the same point where he was before the risk. In case of a partial damage to the house, the insurance covers for components and structures mitigating the losses for the insurer. In case the home was being rented, the house insurance provides a reasonable rental value payout, further covering the risk for the owner. It also covers and pays for a clean-up of waste and debris in the event of a risk like volcano, fire or vandalism

Fifth – The insurance adequately covers for loss and damage due to a theft. Sometimes people have large collection of personal property and valuable (not cash), which are prized over a period of time. This may include trophies, collectibles and valuables. Though house insurance is a voluntary coverage for the owner, some financial institutions insist on an insurance, especially if they are funding you. Hence for your well-being and safety, it is essential to have a house insurance cover.