Home insurance is a policy that secures the house investment at the event of disasters. Disasters includes earthquakes, hurricanes, and typhoons. At some extent it may also include human made disasters like accidental bumping of vehicles and the likes. Depending on the regional definition of disaster, home insurance may warrant the situation.
However, instances of home repairs may not be part of the insurance coverage. It is the responsibility of the home owners to make the best of their house. Insurance policies cannot cover the designs and beautification of the house. Maintenance of the house furniture and fixtures is the sole responsibility of the person. No home insurance policy can cover the item.
Inventory of the materials present in the house especially those who are renting and need sudden transfer is very important. Inventory insurance is not part of the home insurance. You may include in it the replacement policy if there are items lost in the moving process. You can get it as a separate policy.
Liability and legal responsibilities can be insured as well. What does it mean? Transferring the liability during accidents takes away the risk of counter assets. At the event of home wreckage and damage of individuals happen, the insurer takes the responsibility to pay the medical and health expenses. Moreover, legal responsibilities are also transferred from the home owner to the company.
Home insurance is the same with property insurance. You are going to secure the value of what you have with the coverage of your investment. The market value of the property is secured at some percentage.
A little caution in home insurance: Do not buy a policy if the house is older. Home insurance companies will assess the value of your house. Better yet, save the money and buy you’re a new home.
