Home insurance is a necessary evil that ensures you’re “covered” in case of an emergency. Water damage can happen in the blink of an eye—and that’s when you find out whether you’re properly insured. After all, home insurance policies must cover more than just potential special damages. The coverage amount—which seemed sufficient when you first signed up—must now be enough to cover the damage. That’s why it always pays to compare options when taking out all the necessary insurance policies. Ideally, a personal insurance broker can help you navigate the insurance landscape and shed light on the maze of policies and related issues.
What is home insurance?
All items located within your own four walls are covered by home insurance in the event of damage. Furniture, rugs, mirrors, curtains… the insurance usually covers these. If a water pipe bursts and floods the entire laundry room, you’ll be just as glad to have good home insurance as you would be in the event of a fire caused by a technical defect in the stove. Of course, when taking out household insurance, there’s no getting around reading the fine print. That’s because the coverage and the list of exceptions vary depending on the insurance company. As a result, it’s easy to think you’re well-protected, only to end up paying out of pocket when a claim arises—even with existing household insurance.
What types of damage are covered by home insurance?
Taking out a home insurance policy effectively covers a variety of risks. Typically, the policy includes coverage for the following types of damage:
- Fire
- Storm
- Burglary
- Tap water
- Broken glass
In addition, most home insurance policies include personal liability coverage, which protects against claims for damages from third parties who have suffered loss. Everyone living in the same household is covered under the home insurance policy. Important: The contents of the home must be insured at replacement value. This ensures that items such as a bed, table, and microwave can be replaced in the event of damage.
What should you do in the event of a claim?
If damage has occurred, the accident must be reported to the insurer as soon as possible. If there was a fire or a burglary, a report must also be filed with the police. Compiling a list of damaged, destroyed, and stolen items is now the top priority. Any missing savings books and credit cards must be blocked immediately through your bank. The insurance company will reimburse the resulting damages, provided there is no doubt that the incident occurred as described. Otherwise, the insurer is free to investigate the cause. In the best-case scenario, the insurance company will pay out once the accident investigation is complete. It’s only when you actually need household insurance in an emergency—that is, when the damage has already occurred—that you realize how well or poorly you’re insured. Comparing the insurance policies available can therefore save you money, time, and a lot of stress in an emergency.
