Many people assume that those who own a residential property have home insurance. It’s not always the case, though, because there are homeowners who do not possess this for varied reasons.
In the U.K., the Co-operative Insurance reports that 18 percent of adults in the country do not have home insurance for the reason that they cannot afford it. This situation exposes them to financial risks in case burglars get in their homes or other accidents take place. Among those aged below 35, 36 percent of them lack home insurance. Experts say lack of home insurance can only lead to bigger expenses.
In Australia, it is estimated that 31 percent of homes are not insured while among those with insurance, 43 percent are said to be underinsured. Sadly, homeowners whose houses are underinsured do not realize it early on.
During these times when burglary incidents and other disasters happen from time to time, it is always best to protect your home by getting an insurance coverage for it. You may choose a basic policy if you can’t afford to pay much otherwise, a comprehensive policy is the most ideal as it can insure not only your home but you and your family as well. Getting a guaranteed replacement cost policy provides more protection to you and your assets compared to the actual cash policy type.
In Australia, a defined events cover would protect you in specific situations. These include theft, fire or explosion, malicious acts, storm, earthquake, riot, breakage of glass or impact of car or tree, among many others.
Another cover is for accidental loss or damage. This normally provides cover for those included in the defined events policy and cover for accidental loss or damage of items that can’t be found or taken away.
Basically, a home and contents insurance covers any residential building and most parts of it from the walls, fences, driveways, verandas and gates to the fixtures, garage, fittings and air conditioning systems among others. Do make it a point to specify an amount that covers the current rebuilding value and other professional costs associated with it.
Cover for art pieces, antique collections and jewelry may be limited to a specific value. However, you can increase the insured amount by specifically them individually on the policy.
As for contents insurance, this normally includes a personal liability cover that can protect you in case a person gets injured or his property gets damaged while in your home’s premises. People working in your home are not covered as they usually have their own personal liability insurance.
Always consult with your provider and be clear about your needs to ensure that you and your property are well protected in times of emergencies.
Photo via moneypress.org.uk
About the guest author:
Carrie is a former insurance agent turned writer. He writes for certain business-focused blogs including Homeinsurance.com.