What is Home Insurance?
If you are taking out a mortgage, or perhaps wish to ensure that your property is as secure as possible, then you will often be told to get home insurance. So; what is home insurance? Well; that is exactly what we are going to take a little look at on this page.
The general idea of home insurance is that it will provide protection for your property. It is much the same as car insurance or even life insurance. If something happens to your property and it is within the terms of your policy (i.e. a fire, theft, or some types of weather damage) then you will receive a payout. The intention of the payout is to put you back in the position that you were in before the peril actually occurred (i.e. the damage is repaired).
There are a variety of different home insurance policies out there. Some will cover the whole building and nothing but the building, but other home insurance companies will go as far to say that they will cover the property inside it too (and in some cases if your property is not actually inside of the home at the time that it is damaged!)
It is worth nothing that not all types of damage will be covered under your home insurance. For example; if you are in an area which is of a high risk of earthquakes and the like, then it is likely that the insurance company will try to limit their liability under the terms of your policy simply because they do not want to pay out that much (who can blame them, the insurance company wants to make money, right?). There are of course a few other things which may not necessarily be covered under the terms of your insurance policy. In fact; I have never seen a home insurance policy not specifically exclude damage as a result of war. To be fair though; if you are reading this then it is unlikely that you are located in a location which is at a risk of this happening. The vast majority of damage to your property will be covered.
It is also worth noting that the majority of mortgage companies out there will require you to have some sort of home insurance policy in place. This is to protect their interests. After all; if your home is damaged then they will be unable to recoup the loan they gave you unless the damage is rectified!
Remember; all home insurance policies are different. If you are shopping around for a home insurance policy, and it is really recommended that you do, then it is absolutely vital that you take the time to find the right insurance provider for your needs. Do make sure that you read through every nuance of the policy to ensure that what you are purchasing is worth the money. It may be worth taking a peek at an online insurance calculator in order to determine whether your selected policy is right for you or not.
We represent a couple of great short term insurance companies. We can give you home insurance quotes from Auto & General, Santam, etc.
To get a free home insurance quote, simply click here.