Home insurance: What are the benefits and how does it work?

When you talk about asset protection, the first thing that comes to mind is car insurance , right? Although it is extremely important these days, having home insurance is equally important.

This service is inexpensive and serves to safeguard property in the event of accidents, unanticipated weather disasters, and theft, among other things. However, many people are unaware of these benefits and do not obtain homeowners insurance. If you’re in this category, keep reading to discover more about the subject!

Reasons to take out home insurance

The main reason is to protect your home, ensuring greater peace of mind and security for your family. This way, you can go on vacation or stay away for a few days without worrying so much about the safety of your assets.

Consider the following scenario: if lightning strikes your house and burns out multiple electrical gadgets, in addition to the inconvenience of dealing with the problem, you will be forced to spend a significant amount of money repairing or replacing the products. Having house insurance protects you in situations like these since damaged appliances will be paid by the insurance provider.

What is the coverage of this type of insurance?

Many people mistakenly believe that home insurance only covers fires and lightning strikes, however, it is possible to customize the service according to the contractor’s interests, including a set of insurance policies in a single policy.

The basic contract warranty offers protection against fire, lightning strikes and explosions. The compensation will be calculated according to the declared value of the residence, plus an estimated cost of the goods in it. There are no deductibles charged in this case.

In addition to basic protection, it is possible to purchase additional coverage , such as:

  • robbery and theft : the insurance company will pay compensation to repair the house and replace the objects taken;
  • electrical damage : this category protects the insured in the event of wiring problems, burned appliances, etc.;
  • windstorm : the coverage protects the residence from damage caused by windstorms, hurricanes, tornadoes and hailstorms;
  • leak : the insurance company repairs the damage caused in situations like this;
  • vehicle impact : if a car crashes into your home and damages a wall or facade, the insurance will cover the repair costs;
  • civil liability : this coverage refers to damages to third parties , being useful, for example, if the renovation in your apartment affects the neighbor’s unit.

The offer of complementary coverage varies depending on the insurer, therefore, it is essential to carefully analyze the services offered before concluding the contract.

Furthermore, be sure to check the exclusions in the contract, generally, it does not cover theft without traces of forced entry, construction flaws, wear and tear due to lack of maintenance, pre-existing defects, vandalism, among others.

What to consider before taking out home insurance

Competition in this market is high, so it is necessary to research and carefully evaluate the credibility of the company and the services offered before choosing home insurance. Some insurance companies offer assistance with locksmiths, plumbers, roof repairs, etc., which may be interesting for the customer.

To define the best cost-benefit, it is also necessary to evaluate the cost of the additional coverage deductible, which normally corresponds to a percentage of the claim value.

Many people don’t take out home insurance because they believe it is a high investment, which is a big mistake, as, in many cases, it is more economical than car insurance. Furthermore, as we have seen throughout the post, it is extremely important to protect your assets and ensure your family’s peace of mind in unexpected situations.

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