Household insurance is essential to protect you from unexpected events such as floods, fires, theft, or damage. In this article, you will learn what exactly household insurance is, what the two types of household insurance are, what the most common policies cover, whether you need household insurance, and what the consequences are if you don't have household insurance.
Household insurance is insurance that protects your home and furnishings in the event of fire, flood, damage, or theft. There are two types of home insurance - building insurance and household insurance - both of which can help protect you.
Building insurance
Building insurance protects the physical structure of your house. This insurance protects you against floods, fires, and subsidence. Most building insurance policies cover not only the house but also outbuildings such as sheds, conservatories, and garages. In addition, depending on the policy, you may also be covered for damage to fixtures and fittings such as bathroom and kitchen appliances. The insurance usually covers up to the amount needed to completely rebuild the house. Before you buy insurance, you should carefully review your policy to make sure you are adequately covered. For example, if you live in a flood zone, you should check to see what impact this will have on your coverage.
Contents Insurance
Property insurance covers, as the name implies, the contents of your home. This includes everything from appliances and carpets to items you occasionally take outside, such as cameras, bikes, and jewelry. You should inform your insurer of specific items you want to insure, such as antique rings, or you may not be covered. As with property insurance, you should shop around for the best deal (check the deductible, etc.) and make sure you have the coverage you need.
Some mortgage lenders may require you to purchase insurance before approving a mortgage, but they may not require you to purchase specific insurance from that company.
If you don't have homeowner insurance, the consequences can be catastrophic. For example, if you suffer water damage or theft, you may have to pay for it if you do not have adequate insurance.
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