Importance of Having Insurance for Your House

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Importance of Having Insurance for Your House


We all know it is important to have insurance. Whether it is life insurance, medical insurance or home insurance. All these insurance are important to have in life as they protect you from loss. Imagine having your house damaged in a natural disaster, such as flash flood. With no protection, you will be helpless against all the damages that are caused by it. With so many condominiums in KL, it is essential that you buy insurance to protect your house. There are three types of policies that you can buy to protect your house: basic fire policy; house owner policy; householder policy. This article will guide you through the importance of having insurance for your house. 

There are two reasons why it is important to have insurance for your house:

A. Protects your valuable asset

Your house that you live in is the most valuable asset that one can own. A home insurance makes it possible to have your repairs covered, if needed. For example, if you suffer damages due to natural disaster, such as flood, having a insurance makes it possible to pay for these damages. Your home and assets will be protected against natural disasters, including flood, fires, explosion, thunderbolt, lightning, and even natural events such as typhoon, hurricane, earthquake, cyclone, volcanic eruption and windstorm. Having insurance for your house keeps your house well maintained and protects your family’s security. Therefore, make sure you choose the right policy from the right insurance company.

B. Your lender might require that you have a policy

If you have a mortgage for your house, the lender might require you to have a policy for your house. This is because they have money on the line as well. Your house is also the collateral on the loan. If your house is damaged and you lack insurance coverage, you might not be able to pay off the mortgage loan. If the house is damaged, the value of the house might not be enough to cover what the lender is owed.

Most importantly, having home insurance is a 24/7 protection to you and your family. The insurance you buy will cover your home contents while you are away or having a vacation.

There are 3 types of policy for homeowners to choose from:

1. Basic Fire Policy

The basic fire policy will cover only the costs of damages to your property if and only if the damages are done by fire, explosion or lighning. That being said, damages done by other external factors to your home is not insured and you will need to fork out extra money from your own wallet to fix the damages. This will actually cost more than the houseowner policy in the future if there is any uneventful situation takes place.

2. Houseowner Policy

Are you the kind of person who counts every single cent you use carefully just to ensure you do not overspend, and at the same time, get the best out of what you have spent? Do you save as much as you can every month? If yes, you are classified as one of the economical homeowners. In this case, a houseowner policy will suit you the best as it provides protection to your home without breaking your wallet or bank account. A houseowner policy will give you sufficient coverage for your home against any possible external damages. It provides additional coverage than the basic fire policy, such as flood or burst pipes depending on the houseowner policy.

3. Householder Policy

Are you a fan of collecting antiques, paintings, furniture or even expensive handbags and watches? If yes, you are classified as on of the collector homeowners where you collect many valuable items. If you have any items that you think require extra insurance in case of any uneventful situation where they are stolen or damaged, you might want to consider buying a householder coverage on top of your houseowner coverage. A householder policy covers your household contents and includes coverage for fatal injuries to you as well.

With these combined protections, you will never need to worry about the costs of damages to your house and losing any valuables at home in case of natural disasters, burglary or maybe a fire. Therefore, it is essential to know the importance of having insurance for your house. In conclusion, having a home insurance to insure yourself and your house is important. Make sure you make the right choice in choosing the right home insurance. It does not necessarily mean the more expensive, the better.

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