12:20 08 December 2012
It may not be pleasant to think about all the possible dangers that may happen to your home, but this is necessary in order for you to think about how you can guard yourself against them.
The best way to protect your home is by taking out a home insurance policy. If this is what you are planning to do, or if you have already done so, keep in mind that to get the best form of protection your policy should provide adequate coverage.
What kind of home insurance policy should you take out?
There are many different types of policies, such as contents insurance and building insurance, and also those that combine these two together.
Since many mortgage lenders ask for only building insurance, many homeowners opt for this type of policy as it is less expensive.
This policy, however, only covers the outer shell of your home. A contents insurance policy on the other hand, protects the contents of your home.
If you wish to get both policies it is best to take out a combined policy as it is more cost-efficient.
What events does your policy cover?
Home insurance policies typically cover fire damage, theft, flood damage, and storm damage. Building insurance also covers damages due to subsidence as well as those caused by a third party.
Garages, greenhouses, and all fixed fixtures in the bathroom and kitchen may all be included in the policy depending on the stipulations.
A contents insurance policy covers all electrical goods, clothing, furniture, carpets, and even utensils in the kitchen. Generally, this policy will protect all moveable items within your home.
How much should be insured?
Before taking out a policy, you should take an inventory of the contents of your home. This will help you determine the total insurance sum, which is the maximum amount you can claim.
Although it raises the total amount of coverage that you will receive in terms of home damage, over-insuring your home also means you will pay higher premiums every month.
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