Insurance For Your Home
If you are a proud homeowner, you know that your home is probably the largest investment you will ever make. Protect this valuable investment by getting a home insurance policy to cover your asset in the event of a crisis such as fire, flood, storm damage, earthquake or vandalism. After all, how could you possibly replace your home financially if you lost everything and didn't have home insurance?
Your Mortgage Lender Wants Home Insurance
Most mortgage lenders insist you have a home insurance policy to extend a mortgage loan. The lender wants to know the assets they are lending money on is protected so their interests are covered. Therefore, your mortgage lender will require you to have building insurance to cover the structure and property they are financing so they are repaid if a damaging event occurs.
Home Insurance – Two Basic Types
Home insurance is available in two basic types – building insurance and contents insurance. There are also a variety of other specialist policies to cover other specific needs.
Building insurance covers the cost to rebuild your home if it was damaged during a disaster such as a flood, storm, burst pipes, subsidence, vandalism, explosions, fire and smoke. This amount should be determined by a surveyor because the market value of your house differs from what it would cost to rebuild your house.
Contents insurance covers anything that is not a fixed part of your house such as electronics, appliances, clothing, furniture and even food. You can choose an old to new contents policy for an additional premium that covers the cost of an old item, such as a carpet, with a new one. A contents policy can also cover injuries in your home and other legal liability as well as optional coverage for certain valuables such as antiques, jewelry and artwork.
You Need Home Insurance
Unforeseen events can happen and you never know when a crisis will occur. Having home insurance protects your valuable asset for greater financial security and peace of mind.