People are used to the idea that car insurance is mandatory because they understand its purpose at glance. The risks of having a car, such as having accidents or the car being stolen, are very common and the benefit of having your car insured is obvious. However, when it comes to insuring one’s home people usually get doubtful about it. Seriously, who can steal an entire house? Or how badly the building could be damaged in order to require homeowners insurance coverage?
Home coverage is usually presented in two forms. The first one is casualty insurance and applies to the house itself and its contents in case they get damaged or stolen. The second is liability insurance, which deals with any liability that can arise towards third parties while they are on your property.
Who should consider insuring their house? The simple answer would be everyone. Regardless of where you live, whether it’s a small apartment in large city downtown or a large suburban house with dozen rooms you are always exposed to a certain risk of having your property damaged or destroyed by various perils. It doesn’t even matter whether you own the place or just rent it. Home insurance is available for virtually any form of property you may dwell in.
It really pays to buy home insurance right when you walk into your first house because you may never predict when it may come in handy. So it should be on your list of priorities just like buying new furniture or matching pillows for your bedroom.
But before you start investigating the possibilities for insuring your home there should be some details taken into account. First of all you will have to asses the square footage of your house, the age of building and any additional features that may affect its coverage. You should also review all the contents of your house and compile an inventory with name, description, purchase price and serial number if available for every item you want to be covered under your home insurance policy. This way you can make sure that by insuring your house you will get all your property paid for in case it gets damaged or destroyed.
If you’re running a home based business make sure that you take business insurance besides home insurance. Many home based business owners assume that they home coverage will pay for any damage caused by business operations simply because they are doing it in their private house. So make sure to get all the respective policies in order to keep both your business and house insured properly.
And remember that different coverage options are used to protect you from different situation. So you will have to review your policy, see what’s included and what’s not and tailor it in a way so that all the perils you want your house to be covered against to be included. Because you definitely don’t want to find out that your policy doesn’t cover particular perils when you actually need the money to fix your house.