You save, borrow or both to build or buy it. The joy of owning it is second to none and you join the ranks of the proud people who are referred to as homeowners. Then, something catastrophic happens; it burns to the ground; gets washed away or collapses during a hurricane.
The cost of rebuilding your home is overwhelming and the pain and anguish of having to start over is unbearable.
This does not have to be your situation – insure your house. Every wise person gets his house insured not because he expects it to burn, collapse or get washed away, but because any of these things could happen and he needs to be compensated. Home insurance, or homeowners insurance, is an insurance policy that combines various personal insurance protections which can include losses occurring to one’s home, its content, loss of its use (additional living expenses), loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at home.
The cost of homeowners insurance often depends on what it would cost to replace the house and which additional riders – additional items to be insured – are attached to the policy.
The home insurance policy is usually a term contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term. Most insurers charge a lower premium if it appears less likely the home will be damaged or destroyed: for example, if the house is situated next to the fire station, or if the house is equipped with fire sprinklers and fire alarms.
Ensure that you get quotes from at least three different insurance companies and compare them side by side. Understand everything in your contract and if you don’t, simply ask an agent to guide you through. Know exactly what you will be covered for and how quickly you can expect to be compensated should your home be destroyed.
Good luck and all the best with your house. Protect it .. get home insurance!
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