Property insurance does not escape this scathing consensus. This kind of thinking though is dangerous because insurance is absolutely necessary, not just to secure a mortgage but also to have true peace of mind that in the event of some disaster or other unsavory event your home, its contents and even your family will be able to be restored to some sense of normalcy.
Property insurance contains several different clauses, waivers and riders but it can generally be divided into two main categories. Basic Homeowner's Insurance and Property Insurance for Renters
Homeowner's Insurance
The riders or perils that are included in the homeowner's insurance package are dependent on the insurance company you decide to use. Different insurance providers cluster different perils together to offer them as packages to their clients and of course the cost will also vary.
However, there are some common inclusions and they are;
- Fire
- Earthquake
- Flood
- Collapse due to landslip
- Hurricane
- Malicious Damage
- Impact by Vehicles
- Falling trees, utility polls
- Falling aerial devices
- Volcanic eruption
This might seem like an extensive list of perils and some of them may be deemed unnecessary, but the nature of insurance is to prepare for the unexpected. The chances of a car crashing into the wall of your property might seem remote... until it happens and then you'll certainly be glad you bothered to buy property insurance.
Generally speaking property insurance is also divided into coverage of the building, coverage of its contents and coverage of liability for others on the premises. Coverage of contents quite literally means insuring the value of furniture, appliances and other personal valuables.
Coverage of the liability for others on the premises takes care of you in the event that something happens to someone else while on your property, for instance the neighbor's child breaks her arm climbing your tree.
Renter's Insurance
Just because you don't own your home doesn't mean you should not be interested in property insurance. Renters should consider insuring the contents of their home since this is what they stand to lose if something were to happen.
Important Questions on Property Insurance
In the final analysis there are certain important questions that need to be addressed.
1. Do you know what your property insurance policy covers?
2. Are your assets are insured at replacement market value or will you be under-insured if something unexpected happens?
3. Have you updated your property insurance policy to reflect changes to your home and its contents (additions to the house, new appliances and expensive remodels)?
Where to Buy Property Insurance
Every insurance company has an arm that offers general insurance, but a few of the most popular are;
Property insurance must be taken seriously especially if you are a homeowner, but even if you are currently renting. It might mean the difference between getting back on your feet after a disaster and struggling under the cost of replacing the assets you worked so hard to accumulate.