Check if you need house insurance or not

house_insuranceWhat are the two important assets that you posses? Without batting an eyelid, you will mention your family and your house. If we extend it to three, your vehicle will also be included. That is why the three types of insurance policies most commonly availed of are as follows:

 Life Insurance

 House Insurance

 Vehicle Insurance

This article will focus on the second one, i.e. insuring your house or property. Now when it comes to this asset, people always wonder whether this type of insurance is needed or not. Those homeowners who do not opt for insurance for their house, do so because of the following reasons.

 They have insured the items in the house – When people purchase a house, they purchase a number of items to be placed inside the home. Most of these items come with their own insurance policies.

 They purchase add-ons with their life insurance – Since everybody opts for life insurance, more often they are eligible for add-ons. These add-ons include asset insurance as well as fire and theft insurance.

However, what homeowners do not realize is that there are severe restrictions with these add-ons. They will cover some aspects of your home but not every single aspect like a house insurance policy. So what are the aspects covered under the normal insurance policy for your home?

 Protection for the Structure

One of the most important points is protecting the structure. A structure refers to the walls, doors and windows in a house. This can be an apartment or a house. Insuring the structure is extremely important. The extreme weather conditions prevalent today mean that the structure of your house can undergo damage from extreme heat as well as extreme cold. In addition to natural causes, manmade causes like fire and break-in attempts can also weaken the structure. In any of these situations, you would not be required to pay for the repairs from your pocket if you have proper insurance for your home.

 Protection for Household Items

As we mentioned, some items do have insurance protection. However, when you opt for a house insurance policy, you are protecting every single item inside your house. This is important because the non-electrical fixtures in your house do not have any normal coverage. Items like switches and bathroom fixtures are extremely important. These can be damaged by natural calamities as well as manmade calamities. In case of replacement due to these calamities, again the cost will not be dumped on you.

 Protects you from any Liability

Most homeowners are not aware of the concept of liability. What this means is that if any individual sustains an injury on their property, they are liable to claim damages from the homeowner. However, homeowners can protect themselves with a house insurance policy. Thus, if any guest sustains an injury due to damages to the structure and fixtures, then their hospitalization cost will be borne by the insurance company and not the homeowner.

Still wondering if you need to insure your house? Read the above reasons and tell us if you are convinced or not.

Laura is a freelance writer with more than 4 years experience and she is interested in various financial topics. You can now read more about the property insurance from Alka (or as Laura says in Danish boligforsikring fra Alka) on this web page.