How To Understand Household Insurance

They say that prevention is always better than cure. True. But no matter how well you take care of your belongings and properties, there is still the possibility of loss and damage. You may prevent theft or fire but you can’t prevent natural calamities. This is why aside from getting an auto policy, getting household insurance is a wise move to protect the value of your properties against any harm. Getting informed is the first important step when getting household insurance.

Household Insurance Defined

Household insurance may be defined differently depending on your location or the insurance company. But commonly, household insurance is your security for the contents of your house, the building itself, or both.

Household insurance can be divided into two general types: household content insurance and household building insurance. Remember, you always have the option to buy these two household insurances. However, always consider your situation when deciding whether to get one or both of these household insurances.

1.    Household Contents Insurance.

This household insurance covers the entire collection of home properties that can be removed such us furniture, appliances, clothes, accessories, and jewelry. You should buy this kind of household insurance if you are renting a place or living with a friend or family.

Meanwhile, the policies on household contents insurance vary depending on your finance company. This works almost the same as in auto insurance. In most cases, insurance companies cover things that you can take out of your place like laptops, jewelry, or cameras. The damages covered by this type of insurance usually include theft, fire, storm, riot, flood, explosion, lightning, and damage from animals, vehicles, and earthquake.

You can always opt for limited coverage if you want cheaper household insurance. However, doing this is not advisable unless you are very sure that you don’t need a certain item of coverage.

2.    Household Building Insurance.

Unlike the household contents insurance, this household insurance covers all the fixtures and fittings in your house. Coverage includes every room in the house, garages, baths, kitchens, walls, roofs, windows, etc. Generally, everything that you cannot bring when you move is included in household building insurance. This insurance covers against fire, lightning, explosion, earthquake, theft, aircraft, or animal accident. The coverage also depends upon your finance company or the kind of household insurance you bought.

Household building insurance is highly important if you live in your own house. But if you are only renting, then leave the building insurance to your landlord and landlady. You are never obligated to insure a building that is not yours or never will be yours.

You should understand that these household insurances do not cover damages caused by negligence, just like in auto insurance. So if you want to get the most out of your household insurance, be it building or contents, you should do regular maintenance and repair of your belongings. Doing this will not only lengthen the lives of your properties but will also save these things from possible rejection from insurance companies. For sure, you don’t want to be left without anything to turn to when calamities, fire, or theft damage your properties.


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