Owning a house is a huge responsibility. Not only do you have to deal with the monthly mortgage installment and other fees such as water and electricity, but you also have to be geared up in case of an unexpected emergency, a robbery or other disaster! Just think about if you had to lose all the belongings in your house or if the entire property is destroyed through a natural disaster. how will you ever be able to live through such an event?
The answer comes by way of homeowners insurance!
Homeowners insurance can commonly be divided into home content insurance which takes care of the actual content inside your home and house structure insurance or building insurance which provides coverage for the structure of the home. Most banking companies will not even consider financing your home if the structure of your home is not insured.
It is important to compile a detailed household inventory. You will need to supply an insurance company with a detailed summary before your insurance coverage and premiums can be worked out. Be sure that you complete this inventory as detailed and scrupulous as possible. There is genuinely no other way to determine the exact value of lost or damaged property and you might end up being underinsured if you try to take shortcuts with your insurance coverage. It’s better yet if you can keep the slips and invoices of new items you buy – this will insure complete accuracy. Even better, photograph all the rooms in the house, ensuring that the most valuable items are clearly visible and also send this to your insurance provider so that they can keep it on record.
Not all homeowners insurance plans will offer the same type of cover. In a few instances you will need additional policies to cover your property against events such as hailstorms and bomb explosions while other damage such as storm damage, fire damage and leaky plumbing might be part of the policy. Needless to say the more in depth the cover required, the more pricey the actual insurance plan.
You should realize that no-one is untouchable. Just because your house is in a secure neighbourhood with 24hour security and a vicious guard dog, does not mean that you will never need homeowners insurance. As stated previously, you also need to insure your property against factors such as fire, theft and storm and no amount of security measures will be able to protect you from these kinds of disasters!
As with all types of insurance coverage you are only harming yourself if you lie on your homeowners insurance application. If you do not have an alarm system installed or stay in a complex with a security guard at the gate, don’t pretend that you do so that you can try and save on your premiums! If it’s time to claim and an assessor is sent to your property, your little white lie can mean that the insurance firm will reject your claim!
To summarize: No homeowner is untouchable! Ensure that you have contents insurance and building insurance in place – then you can sleep sound through the night!