Is home insurance necessary
You might think that because our country is sheltered from typhoons and earthquakes and that our crime rate is relatively low, so we might be able to go without insurance for our homes.
The truth is that there are many possible accidents that may cause damage to your home or destroy your personal belongings. A fire or burst water pipes or collapsed roof to name a few. In 2019 alone, there was a 7.8% increase in the number of fires that broke out in homes.
Who should have home insurance?
Home owners – You currently reside in a place you own and should get a home insurance plan which covers your belongings, renovations, payout for emergency interim accommodation, medical expenses or your precious pet.
Landlords – We can all hope for wonderful tenants who will take good care of your property and household appliances, but it is definitely wiser to be covered for breakdowns with your air conditioner, water heaters, kitchen appliances, etc.
Tenants – If you are living in an unfurnished rented home, you should be getting insurance to cover the furnishings and other appliances that you purchased.
What to cover?
This varies from home to home but the basics are:
Home Contents: These Include the usual items found at home: furniture, electrical appliances, crockery and utensils, clothes, jewelry, personal devices such as laptops, desktops, tablets, mobile phones etc.
Fixtures and Fittings: Renovations and fittings in the house such as walls, ceilings, built-in wardrobes, floor coverings, pipes, toilet bowls, washbasins etc.
Damage to the House: Refers to damage done to the physical structure of the house.
Loss of personal documents, cards money and valuables: Covers personal documents such as passport, birth certificates, identity card, credit cards, driving license, education certificates etc. You can also get covered for your money in cash and valuables such as Rolex watches. However, the payout is capped at a certain amount and it varies from policy to policy.
Interim accommodation: If your home is rendered uninhabitable as a result of let’s say a fire, you will need to find interim accommodation while waiting for it to be fixed. The payout is usually capped at a certain amount and for a certain period of time.