Tuesday, December 12

Avoiding a Disaster – Home Insurance, Are You Protected?

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A roof over our head is the basic requirement of life along with food and clothing. Providing security to your house against all known and unknown risks is the most prudent decision that has to be taken by every house owner. 

Home insurance which is also known as homeowners insurance covers and protects home owner against losses that might  occur at his home, like loss of contents in the house, loss of its use or loss of other personal possessions. It provides liability insurance for accidents that might happen inside the house. The house insurance is fixed term contract. House insurance has two vital coverage features. One is buildings coverage or replacement cost coverage and the other is content protection. Buildings coverage promises to indemnify loss to the main buildings of the house due to events that are covered in the policy. Content protection indemnifies loss to the personal belongings inside the insured home.

Besides these two coverages, a house owner can opt for legal and liability protection. These coverages protect house owner from any law suites filed by others against his home. An accident inside the home which affects guests or any other person can lead to legal action by that particular guest or person. Legal coverage protects against such eventuality.

Another way to protect house when one has opted for mortgage and there is loss of job lurking around is to buy income protection insurance. This converge protects income in the uncertain event of loss of job or stoppage of regular income flow. Besides risking house, a loss of income makes it difficult to provide for basic necessity such as food, cloths, education etc. Income protection insurance guarantees a tax-free replacement income till the age of retirement if necessary. 

A house owner might let his house on rent for a certain period. This might bring some problems along. Landlords insurance coverage can provide respite from such problems and risk. Landlords insurance is an insurance policy that covers a house owner from financial losses arising to his house when it is let out. It covers the building itself and has optional coverage that includes the contents inside. It also covers losses caused by a lawsuit or the loss of income from a tenant.

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