Your home, the place you live in, which you have bought classifies as one of your most valuable assets. And it’s your foremost responsibility to protect that asset. Hence, you turn towards household insurance which enables you to protect this investment of yours.
Naturally so, you must have wondered what household insurance does, whether you have already bought a house or are still paying for its mortgage. Some of the most important reasons behind considering household insurance are:
In some cases, owning a household insurance plan is a part of the requirement. For example, if you have a mortgage, it may be a requirement from your lender that you have household insurance from insurance companies in Pakistan. This is simply to ensure that in case of any damage caused due to any unforeseen events, the house is covered by insurance.
The household insurance policy covers several aspects besides just the house. Yes, the house including your belongings or medical bills is covered by insurance but it goes beyond that. Household insurance may cover some or all of the following:
If a covered peril damages your home or parts of it such as the garage, this dwelling coverage will help in paying for its repair. The charges for this claim are calculated by taking in to account the houses square footage.
If a fence or a shed on your property are destroyed, this other structure coverage enables you to pay for its repairs and get it fixed.
Belongings such as furniture or electronics are covered by personal property coverage in the case that they are damaged and need to be repaired.
In the case that you or your family member have accidentally damaged someone else’s property or even accidentally injured them then personal liability coverage will cover you. This coverage could help you in paying for your legal bills or repairs or even medical bills.
When a guest is staying at your home and he or she accidentally gets injured on your property, then the guest medical protection policy of your coverage will bear all the medical expenses.
In the instance that you are unable to live in your own house temporarily due to destruction or a fire outbreak for example then the place you will be living at temporarily will be paid for by your insurance company. They will bare these temporary living expenses that you will have to pay for.
Hence, having household insurance will provide a financial safety net for you, which is what makes it essential. One must have household insurance however, despite the benefits that it entails and comprises off household insurance also encompasses its own limits as well as deductibles. Limits consist of the most that an insurance company will pay for a claim and deductibles include the amount you are required to pay before your insurance kicks in.