Understanding Home Insurance
9/27/2022
Buying home insurance while owning a home may not seem like a big deal, but on the other hand, it shouldn't be easily overlooked. If my house, one of the greatest assets, disappears in an instant due to a disaster such as a fire or flood, where will me and my family live, and who will compensate for the economic loss?
insurance It is necessary to check with the previous owner for any damage that occurred before paying the balance and to be compensated by the insurance.
If there is a loan in the house, you must purchase home insurance to protect both the bank and the owner, who are the underlying mortgages, and a copy of the subscription certificate must be submitted to the lender.
What are the objects and reasons for compensation?
Although it may differ depending on the insurance company, in general, home insurance covers not only the building of the house, but also the garage, garden sheds, sleepouts, fences, windows, garden trees, swimming pools, tennis courts, post boxes, clothes dryers, etc. All losses and damage caused by unexpected events/accidents will be compensated.
Typical examples of unexpected events/accidents include fire, flood, hail, strong wind, earthquake, etc., as well as damage caused by your own mistakes.
However, there is no compensation for aging and wear and tear due to long-term use.
Home insurance has a kind of levy, which goes to the government's earthquake commission (EQC), and the funds are used to compensate for damage caused by earthquakes, tsunamis, storms, floods, volcanic eruptions, slope discharge, geothermal movement, etc. It is used to give
If the damage is greater than EQC's coverage, home insurance companies will fill the gap.
As a way to save on insurance premiums, you can receive a package discount if you purchase home insurance, household items, and automobiles together as a package.
In addition, buying home insurance and household equipment insurance together is a very good way to easily compensate for the ambiguous parts of the house and household items when making a claim.
Of course, the higher the deductible, the lower the premium, and the lower the deductible, the higher the premium.
There is also insurance for rental properties, and insurance for homes that are being built or are being renovated. In particular, rental housing insurance not only compensates for the building of the house, but also compensates for the loss of rental costs caused by malicious damage caused by tenants, fire, flood, etc.
On the other hand, if damage to rental housing occurs due to the tenant's mistake, the landlord or insurance company will demand compensation from the tenant.
This is because, if you purchase household equipment insurance, not only will you protect your household equipment, but also compensation for damages to third parties (including the building owner) is automatically included.
