Friday, 4 November 2016

Top 7 Reasons to Buy Home Insurance Policy

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Home is a biggest investment that most of us make only once in our entire life. Unfortunately, there’re millions of people out there who just dream to have a house; one can ask them how important is it to own a house. Our dream houses and their contents are always exposed to a number of possible mishaps such as natural calamities (earthquake, storm, fire etc), theft, burglary etc. Therefore, having a home insurance policy, gives us peace of mind that we cannot defer or stop such mishaps, if these are supposed to happen with us, but we’re financially prepared to cope with them.
Advantages of home insurance
A large percentage of homeowners do not insure their properties by assuming that they would not face such setbacks. For those who think so I just want to say, “ask those who have become victims of such catastrophes,” I’m cocksure that none of them is going to say that he/she already knew that it’s going to happen. Therefore, it’s always worthwhile to have a home insurance policy.

There is a misconception among many individuals that a home protection policy only covers building of a house. But, here, I want to clarify that a home insurance policy covers home contents such as electronic appliances, jewelry, antique items, and everything that you want to insure along with structure of your house.
Home insurance is an unwanted but essential need and in this post, we’ve come up with seven compelling reasons to have a home insurance policy. Just take a look at them and then decide whether you need it.
1. Get home insurance cover for accidental events such as fire, theft, burglary, riots, strikes, and the like
Every year fire destroys tens of thousands of houses around the world. It not only destroys houses, it destroys countless dreams. You might have heard through news channels that how had famous skyscrapers caught fire. If not then just type some fire related keywords like building caught fire, on Google to know more. Are you thinking I’m going off-track? Sorry! I’m not. Here I am deliberately mentioning this, just to make you aware that if famous buildings like skyscrapers, that use up-to-the-date fire safety mechanisms, can catch fire then why not our houses can.
Though it (home insurance) cannot stop your house from catching fire but it can certainly minimize the chances of fire incidents, because most home insurers ask customers to install fire safety alarms and fire extinguishers at their houses to get discounts, and can give you peace of mind; that if it happens then you will rebuild your house again.
It also protects our house contents against theft or burglary. Everyone likes to go on vacations, me too, but when we go on vacations then we also clear the way of thieves; they can come and test their sleight of hand. Again as usual, home insurance can’t stop them but certainly can save you against a heart attack (Just kidding!) by giving you compensation up to the cost of loss.
Nowadays, people come on roads, to show their displeasure in a peaceful way, to protest against any unlawful activity. But some crook minded people may turn a peaceful procession into riot and then everybody knows what happens. A home insurance policy also protects your home and its belongings against such things.
2. Insure your home against natural calamities such as earthquake, storms, lightening, flood, and cyclone
A property insurance policy protects your assets from natural calamities such as earthquake, storm, lightening, flood, cyclone etc. These are uncontrollable natural disasters, which ruin lives of many people every year; therefore, one should have a policy to tackle with subsequent situations.
3. Insure your home contents
While buying a home insurance policy, you can select different valuable items of your house to insure along with building insurance. You can select your electronic goods, jewelry, and antique items to get compensation in case of theft or damage. By doing so, your home insurance premium rates increase slightly but you get significantly higher benefits than you pay.
4. Peace of mind
It reduces stress and anxiety in people by giving them peace of mind that their houses are protected. If you have opted a right home insurance policy for your house then it certainly gives you peace of mind (Only if you have acted like an analytical buyer, one who reads all terms and conditions before signing a contract, while buying home insurance). For me, there’s no difference between uninsured people and those who buy insurance without seeing pros and cons.
5. Insurer pays your rent if needed
Once disaster passes away then it takes time to rehab a house in proper order. Meanwhile, you would need to reside in a temporary accommodation, perhaps on rented. In that case, Insurance Company pays for your temporary accommodation.
6. Pay less get more
Unlike other insurance products such as life insurance, general insurance, and health insurance, you pay very low premiums rates in home insurance and in return, you receive significant benefits. These types of insurance products give flexibility to customers to further increase or decrease premiums rates by removing/adding items to be insured and increasing/decreasing percentage of deductibles.
7. Get discounts on premiums for taking safety measures
Frankly saying, as a businessman perspective you would also agree, every insurer wants to enhance his profits but if he keeps paying claims then how could he do it. Therefore, to hike profits and to reduce chances of mishaps, insurance companies offer extra discounts for customers who have installed safety gadgets such fire alarms, surveillance cameras etc, to control mishaps.
Important: Remember all insurance policies are subject to certain exclusions (an event of loss or damage that an insurance policy does not cover is termed as exclusion), therefore, before buying an insurance policy (life insurance, health insurance, or general insurance like home insurance) read inclusions and exclusions clearly. You can take help of your insurance agent to understand policy wordings.
Final Words: 
Home insurance is an essential need to live a hassle free life and to cope with misfortunes that arise due to above mentioned reasons. Premium rates are comparatively lower than the benefits paid therefore you should insure your dream house. You can check premium rates on internet and can also buy home insurance online. While buying a home insurance policy carefully read, “what does it cover and does not cover?” Do not believe on verbal commitments, read policy prospectus/brochure.
If your house is already insured by a bank or lender, in case if you have taken loan, then it is worthless to buy another home insurance policy until you think that policy does not cover the events that you want to insure.

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