A Homeowner’s Guide To Home Insurance

By Medha Roy Chowdhury | January 3, 2019

Understanding the purpose of homeowner’s insurance and its components will help you make important decisions about protecting your home. Let’s take a closer look.

A Homeowner’s Guide To Home Insurance

As a homeowner, you should want to get Home Insurance for the same reason for which people opt for a Life Insurance or Car Insurance– your home is precious!

Your house might be one of the most high-cost expenses you make in our life! Often many rule out the commitment that comes with purchasing a property- safeguarding it against any damage!

We may be helpless in the face of natural calamities such as fire, storm, or floods, but having a Home Insurance in place can help you recover on time.

New to Home Insurance? Have no worries as we have all the bases covered! Read on to know more.

Additional Reading: Looking For Good Home Insurance? Here Are 5 Things To Keep In Mind

  • What is Home Insurance?

First things first, Home Insurance covers two components. While the first is building insurance, the second is contents insurance.

Building insurance is meant to protect the brick and mortar component of the building. On the other hand, contents insurance protects your belongings housed in the building from loss due to theft and damage.

  • What is the point of Home Insurance?

Simply put, your home is not just walls and paint but a space that you associate with love, security, and comfort. Therefore, it is extremely crucial that you take measures to mitigate any damage caused to your prized property. A Home Insurance helps you do just that!

Additional Reading: To Buy Home Insurance Or Not?

  • Is it essential for you to have Home Insurance?

Having a Home Insurance policy in place ensures that you will have financial support in the event of any damage suffered by your property.

If you’re a homeowner, mortgage lenders might insist on you having buildings cover in place to protect their investment.

On the other hand, you don’t usually need buildings cover if you’re renting. In all probability, your landlord/landlady will have one in place. However, you may still want contents insurance to cover the cost of replacing your belongings in the event of a loss.

Additional Reading: How Much Home Insurance Do I Need?

  • Is it mandatory for you to get buildings insurance through your mortgage provider?

Absolutely not! Unless your mortgage clause demands it.

With the wealth of information available online, you can search, compare, and get quotes from multiple insurers before setting your heart on a policy! Different policies offer different features and benefits. The trick is to compare, compare, and compare!

Carefully read through all the associative documents to know everything about your chosen Home Insurance policy. This will prevent surprises when raising claims.

Confused about what to look for in a Home Insurance or which one to pick? BankBazaar is happy to help! Click here for more information.

Additional Reading: Protect Yourself From Natural Calamities With Home Insurance

  • What factors can affect a homeowner’s insurance premiums?

The following factors can affect your homeowner’s insurance premium:

  1. Features and characteristics of your home—Factor such as your house’s age, type of structure, wiring, roof, and garage, etc., can affect your premium. Older homes often cost higher to insure. The costs can differ depending on whether the home is made of brick or stone or has synthetic siding.
  2. Location — Your Home Insurance rate can be affected if your home is in close proximity to a fire station; exposed to extreme weather conditions such as hurricanes, tornadoes or earthquakes; or located in a neighbourhood more prone to theft.
  3. Presence of protective devices — If your home is secured with burglar alarm systems, smoke detectors, fire extinguishers, sprinkler systems and deadbolt locks, it can lower your homeowner’s insurance premium.
  4. Claims history — If you have an extensive history of claims on your previous insurance policy, you may end up paying a higher premium.

Additional Reading: A Quick Guide To Home Insurance

  • A word of caution!

Like any other financial document, your Home Insurance requires special attention. Don’t overlook the terms and conditions stated in your policy document.

You can choose between getting your gadgets and high-end appliances covered or just protecting your walls against fire and floods. Read the document carefully to verify if the insurance cover you have opted for matches your needs!

Additional Reading: Ask Yourself These Questions On Your Insurance Policy Closure

If you wish to start 2019 on a note of financial discipline, begin by getting your home insured!

Now that you know the benefits of having your Home Insurance, why not take a tour of our website and take your pick out of the host of financial products we have?

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Home Insurance Insurance UCN
Medha Roy Chowdhury

About Medha Roy Chowdhury

Square peg in a round hole, Medha reads whenever she gets the chance to. She is happiest when travelling and dreads having to choose between the hills and the sea. Dog lover at heart, she is in pursuit of adopting a few canine friends someday. Weird as it may be, she bakes when stressed. Previously a Market Research Editor by profession, she takes a keen interest in finance. When she is not reading, you’re sure to find her with her ukulele.

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