For most people, their home will be one of their biggest assets. That's not just financially, many of us put in a huge amount of effort and time making our home truly feel like one. That's why it's so important to protect your home with insurance.
There are more risks facing your property than you may realise. In fact, it's full of hazards both inside and outside that could damage your home. If not, there's always a chance you could be a victim to a theft.
So rather than take the risk, the natural solution is to take out some form of insurance. Let's take a look at some of the types that can help protect your home.
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1. Buildings insurance
When it comes to protecting your home, building insurance is a must-have. This type of insurance covers the structure of your home, including the walls, roof, and floors. So if anything happens that causes damage to these parts of your house - like a fire, storm or flood - you can rest easy knowing that you're covered.
Building insurance typically covers:
- Damage to permanent fixtures in your home, such as built-in wardrobes and kitchen units
- Structural damage caused by events such as storms, floods, or sinking
- Outside fixtures such as garages, pipes, and fences
- The cost of rebuilding your home if it is completely destroyed
Some insurers may also cover accidental damage or legal expenses related to building repairs. However, this will depend on aspects such as the insurer's policy and the level of cover you have.
Building insurance won't cover things like:
- Wear and tear
- Damage to gates and fences
- Deliberate damage
- Damage caused by pets, pests and infestations
While it might seem unlikely that your home will suffer from significant damage. The question is, are you prepared to take that risk? If not, buildings insurance can provide the peace of mind you need to protect your most valuable asset.
2. Contents insurance
It's not just about the home, but what's inside it as well. Contents insurance covers the belongings inside your home, such as furniture, electronics, and personal items. This type of insurance can protect you in case of theft, fire or other disasters that damage or destroy your possessions.
Contents insurance typically covers damage or theft to things like:
- Furniture and appliances
- Electronics such as TVs, computers, and smartphones
- Clothing and belongings
- Valuables like jewellery and artwork
- Memorabilia
Contents insurance won't cover things like:
- Damage caused by wear and tear
- Items that are not specified in your policy
- Damage caused by pets or pests
- Loss of items due to negligence or carelessness
Essentially, it saves you the hassle and money of having to replace all of your belongings. It's also worth buying if you live in an area that is prone to break-ins or natural disasters, as it can provide financial protection in case of unexpected events.
3. Life insurance
If you own a home, it's more than likely you took out a mortgage to finance it. But what if something were to happen to you before it's paid off? It sounds unlikely, but in reality, accidents and illnesses can happen at any time. In which case it's a good idea to take out life insurance to protect your mortgage.
Without it your family could be left in a tough financial situation if you were to pass away. If they are unable to pay the mortgage, they could be forced to sell the home or lose it altogether. Where as if you own a life insurance policy, your family can use the money from your policy to make payments and keep the home.
There are two main types of life insurance - both of which can be used to cover your mortgage:
- Term life insurance, which provides coverage for a specific period of time, usually the length of your mortgage. If you were to pass away during this time, the policy would pay out a lump sum to cover the remaining balance on your mortgage.
- Whole life insurance, provides lifelong cover and can be used to cover your mortgage as well. It can payout regardless of when you die, so even if the mortgage has been repaid, your family can use the money to cover other expenses or as an inheritance.
The bottom line is, life insurance is a smart way to prepare for the unexpected. Without you put your family at risk, which of course - nobody wants to do.
4. Flood Insurance
You never know when mother nature will decide to throw a flood your way. Or who knows if you have a pipe that's about to burst. Some areas also suffer from regular flooding due to their location, making flood insurance even more of a must.
Flood insurance typically falls under buildings and contents insurance, and covers damage to your home and belongings caused by flooding. This can include damage to walls, floors, ceilings, electrical systems, appliances, furniture, and more. Without flood insurance, you could be left with extensive repair costs that may not be covered by your standard insurance policy.
5. Empty home insurance
Some of us are lucky enough to have a second home or property that we don't live in full-time. Whether it's a holiday home, rental property, or simply a vacant home waiting to be sold/rented, it needs to be protected.
Empty homes are more vulnerable to risks such as break-ins, vandalism, and damage from weather or pests. Standard home insurance policies often do not cover properties that are left empty for extended periods of time. But with empty home insurance (also known as unoccupied home insurance), you can ensure your property is protected even when it's not in use.
This type of insurance typically covers:
- Theft
- Vandalism
- Fire and water damage
- Squatters
- Owner liability
No matter what the situation there are plenty of ways to protect your home. If you've already invested in insurance, you can sit back and relax. But if you've yet to take out cover you should really think about doing so sooner rather than later. After all, disaster can strike at any time!
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