Home Insurance

Some people wonder why home insurance is needed. Here are a few reasons behind this:

It covers additional living expenses in case you can’t live in your home temporarily.
It may cover the cost of personal property that’s been stolen from your vehicle.

Condominium or condo coverage provides covers for:

Damage or loss inside your unit and storage locker.
Damage or loss to your belongings.
Personal liability claims if someone is injured in your home.
Additional living expenses in case you are unable to live in your condo due to a loss covered by your policy.

Also called renter’s insurance, this pays for:

Any injury to visitors.
Additional living expenses in case you are unable to live in your apartment due to a loss covered by your policy.
Any loss/damage to your belongings if you rent or lease your apartment from someone else.

In most cases, this policy provides cover for you and your family. You should get the exact details on this aspect from your insurer.

Also, get complete clarity on the type of settlement you can expect if you make a claim.

For your home, you may need a combination of two types of coverage.

This protects you in case of loss or damage to your home/personal possessions and your car.

This protects you against any legal liability for losses caused due to injury to other people or damage to others’ property.

An extensive range of home insurance policies is offered by insurance companies, all with different levels of coverage against risks and damages.

Also called a special or all-perils policy, this one provides the maximum coverage, including all risks to your home and its contents.

Also called a basic or perils policy, this one provides cover for the risks to your home and all the contents named in your policy.

Also called a broad-form policy, this one is a kind of go-between the comprehensive and standard policies.

This one offers the least possible coverage, mostly for homes that don’t meet the usual insurance standards.

Read the policy for events that are covered or not by your home insurance policy.
In most cases, home insurance does cover unexpected events or accidents such as fire, windstorm, or theft – which are known as perils by insurance companies. Check your policy for these.
Predictable and maintenance-related events of your home aren’t covered usually in home insurance policies. Check for this clause.
Premiums vary across insurance companies. Remember to spend some time on research related to quotes and premiums. Don’t just blindly opt for a policy.

When you make a claim, the insurance company will review it and then decide how to settle it. There are two ways of doing this:

In this, you receive the cost of the item when it is new. However, depreciation is deducted from this amount.

In this, you receive the actual cost to replace a destroyed or damaged item.

If you have a mortgage, in almost all cases, your home insurance policy will include a loss payee clause.

This clause names your lender as the beneficiary.

In case you make a claim, the insurance company may give the amount to you or your lender. This decision is completely up to the company.