Property Insurance for Your Home
As soon as you become a home owner, “what is property insurance” will be one of the first questions you need to find a good answer for.
Like any other type of insurance, property insurance will offer you protection against the large portion of risks to property, fire and water damage including. Depending on the type of insurance purchased, some of the most likely to happen damages will be covered, but some you may think they are included, may be not on the list. This is why you have to be clear of what type of insurance you are choosing. You may want to add earthquake coverage (if applicable in your area), flood insurance, or even boiler insurance.
The price you pay for your property insurance will reflect the extend of coverage you get, although, if you don’t shop around and ask as many questions as possible, you may end up paying more for less.
It is a good idea to discuss with your insurance broker about your property details, requesting a customized insurance plan. Usually, a property insurance can either cover all causes of loss (as long as those losses are not excluded specifically by the terms of the policy), or specific items, mentioned on a list you provided to the insurance company.
Another thing to know is that when you own your house, you need to purchase more than just the building insurance policy. You need to have a second, separate policy, called “content policy”. This will cover your valuables (check the restrictions and add specific items if necessary), plus betterments, or improvements you did after purchase. This can be a new set of kitchen cabinets, new counter tops, floors, and so on, so forth.
In case you have other structures, such a detached garage, you need to make sure that it is included in your insurance policy. Ideally, you should have also out-of-the-pocket expenses like hotel rooms, in case your property is extensively damaged.
Another think to consider it is something not many are thinking often about: liability coverage. As a home owner, you may be held liable for all types of accidents other people or their belongings might have on your property.
There are usually limitations in house insurance, condo insurance or tenants insurance policy coverage usually for theft coverage ( jewellery and furs, silverware) bicycles, money, and other special items. To cover all the above mentioned, purchase additional coverage to your policy.
What is property insurance is not a simple question. The answer is complex, and most important, must be custom-made to fit your specific situation.