September 22, 2017

Understanding Different Types of Household Insurance

Home is one of our major investments. It’s the fruit of years of labour and determination. Of course, we want it to last, so a lot of people choose to insure their homes. A household insurance provides that peace of mind, knowing that your property is secured in case any unfortunate event happens. The thing is, there are so many aspects when it comes to household insurance, and there are different types out there. That is why it is essential to compare home insurance and weigh the pros and cons. In this article, we’ve rounded up details that can help you understand the different types of household insurance.

A household insurance provides that peace of mind, knowing that your property is secured in case any unfortunate event happens.

Home insurance

This offers coverage for financial losses as a result of loss or damage to your property. In most cases, this type of insurance covers the main dwelling, garage, home improvements, as well as fixtures. If you have a home loan, your lender may ask you to get this type of insurance.

Contents insurance

As the name suggests, it offers coverage to your possessions in case of loss, theft or damage. It includes repair or replacement of certain contents of your home such as furniture, appliances, clothes, jewelry, and sports equipment.

Home and contents insurance

This type offers coverage for both the property and its contents

Landlord’s insurance

If you’re renting out your property, this may be the insurance for you. It covers financial losses due to natural disasters including fire and typhoons.

Renter’s/Tenant’s insurance

This is for those who rent a property. It offers coverage for financial losses on contents as a result of unfortunate incidents such as theft and fire.  Accidental damage to fixtures and fittings can also be covered in this policy.

Strata insurance

This type of insurance offers coverage for financial losses related to loss or damage to property which operates under a strata-title or title arrangement with several units.

Knowing the different types of household insurance is just one aspect when it comes to insuring your property. Bear in mind that insurers differ in the products and services that they offer. To get the best deal, make sure to do some home insurance comparison to see which meets your requirements. For terms that you’re not familiar with, you can ask help from a qualified individual so you will better understand how household insurance works and what can be covered.

Do you have other ideas on how to get the best home insurance? Share your tips in the comments section.

About the author  ⁄ Marxa Dillan

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