Homeowners: get the right insurance
Thursday 15 September 2022
If you own a house, you know it's important to insure it properly. But which insurances do you actually need? In this article, find out which insurances are crucial for homeowners.
Check out the different types of insurance below
Home contents insurance
If you are a homeowner then getting contents insurance is very important. This insurance covers damage to your belongings during a burglary, fire or water damage. Contents means all the things in a house that are not fixed. Think of your TV, laptop, phone, expensive clothes and jewellery, but also your furniture. Pets are also usually included in the list of 'belongings' and therefore covered by contents insurance.
Buildings insurance is compulsory if you have a mortgage on your house. Building insurance insures damage to your house caused by fire, for example. It covers everything attached to your house, such as the roof and the drainpipe. Building insurance reimburses the cost of the damage and the cost of making your house habitable again. However, there are some exceptions. For example, building insurance does not cover damage caused by poor maintenance, earthquakes or floods, for example. Also, coverage for damage caused by water damage from the inside is usually not included in a building insurance policy. This, however, is cover you get with contents insurance or home insurance.
Besides contents insurance, it is also wise to take out home insurance. Home insurance covers damage to your home in the event of a burglary, fire or water damage, for example. This insurance also covers the costs if your house is declared uninhabitable. For example, if there is major damage to your house and it needs to be repaired. So without home insurance, you pay these costs out of your own pocket.
It is also wise to take out liability insurance. This insurance covers damage you cause to another person. Think of a broken window at your neighbour's due to a children's ball, or damage to a person due to an attack by your dog, for example. Liability insurance is thus mainly designed to protect you from third-party claims.
Legal expenses insurance
Legal expenses insurance is also one that you really don't want and can't do without. This insurance is there to protect you against the costs of legal proceedings. Think of a divorce, a conflict with your neighbours or a dismissal procedure. Legal expenses insurance often only comes into play when you have a conflict with someone else and cannot resolve it yourself. You can then contact your insurance company and they will engage a lawyer. In some cases, legal expenses insurance can also reimburse the costs of the proceedings. This does depend on the insurance policy you have taken out. So it is wise to read your policy carefully.