Cheap Home Insurance Quotes – The house is one of everyone’s dream properties as a safe and comfortable place to live. There are various ways to protect property such as a house, one of which is insurance.
Although it has benefits, maybe home insurance is still not as popular as other types of insurance. This is especially true when compared to health or education insurance. Then, how important is this insurance? What are the benefits?
What is Home Insurance? Home insurance is one type of insurance that is included in property insurance. Previously we will discuss property insurance first. Reporting from Investopedia, property insurance is a protection or obligation for property owners.
This insurance provides coverage or refunds to the owner or tenant of a property that is damaged or theft occurs. Some insurance products even cover someone who is injured if they are on the property. It is given when there is damage or things that harm someone.
Cheap Home Insurance Quotes
Property insurance has several types such as home insurance, renters insurance, flood insurance, and earthquake insurance.
Home insurance that we want to discuss has the benefit of protection for homeowners when their home is damaged, natural disaster, theft, or other damage.
Well, not only build a house, this insurance also covers all property or furniture in the house. What is Covered? In general, home insurance covers 4 types of incidents on the property.
These four things are interior damage, exterior damage, loss or damage to assets or property, and injury to a person when a property is damaged.
When a claim is made, the policyholder is required to pay a premium per year within a specified time. The nominal amount is certainly cheaper than the amount covered by insurance.
Home Insurance Claim
Maybe some of us are still confused about how to claim this type of insurance. Moreover, the product cannot be brought directly to the insurance office.
Actually, this type of insurance claim is similar to how to claim other goods and is not difficult. The policyholder only fills out the form provided and shows various kinds of evidence such as photos.
For losses due to fire, for example, a supporting certificate from the Police is also required. After fully meeting the requirements, the insurance officer will come to review directly whether the damage that occurred was true or just intentional.
If the damage is caused by a natural disaster, the process is much faster than fire damage, for example. The fire incident will be investigated further by the police whether the fire was purely an accident or just an intention to get a claim.
How Home Insurance Works
How does home insurance work? It’s easy, let’s see with an example case below:
You have a house with a building area of 100 square meters, with a house coverage value of $ 50,000.
How do I find out? The insured value will be obtained by calculating the amount of funds that will be needed to build a 300-meter house at this time.
If currently needed $ 500 to build every square meter, so for a house with an area of 100 square meters it takes $ 50,000.
In addition to physical buildings, you can also insure assets inside the house.
For example, if the value of your assets is Rp. 100 million, then the total coverage you will get is $ 50,000.
Then, how to calculate the premium? Reporting from Kumparan, you can multiply the value above by per mile units, for example, 0.2194%. In this way, the annual premium to be paid is $ 5000 which has not been added to the administration fee.
The Importance of Home Insurance
There are still many who underestimate the importance of home insurance even though this insurance has many benefits, including:
- Protect the value of the house
A house is one of the biggest investments a person makes in his life. In fact, many think that housing can be used as an asset whose value continues to grow.
Moreover, if we carry out various renovations, the value of the house will also increase. This is where insurance benefits can protect properties such as homes
When a risk occurs at a later date, the insurance company will replace it, so you don’t have to worry about losing property value.
- Provide a temporary place when a risk occurs
Not only providing guarantees for property, home insurance also provides temporary protection for policyholders who experience damage to their homes due to natural disasters.
For example, when there is a policyholder whose house is damaged due to flooding and causes the homeowner to not have a place to stay to rest for a while.
Some insurance companies offer accommodation financing until the insured home is repaired and is habitable.
- Protect the risk of loss
Home insurance serves not only to protect against home damage but also the loss of other valuables. The robbery incident will certainly cause a very large loss. This insurance can protect valuables and will compensate for losses according to the agreement.
- There is an extended warranty
Some insurance companies offer coverage that extends from a predetermined standard. Generally, insurance covers damage caused by an earthquake, fire, flood, or hurricane.
In addition, there are also those that offer expansions such as damage from riots, lightning strikes, riots, terrorism, floods, and even plane crashes.
Tips for Choosing Home Insurance
How to choose insurance to get the best premium and maximum coverage?
- Make comparisons
First, do a comparison of different insurance companies that offer home insurance.
From this comparison you can find out which one is the best in terms of premiums, benefits, guarantees, and more.
The average insurance company already has an online site so you no longer need to bother visiting insurance agents one by one.
- Find out the protection and benefits
This protection and benefits are also the most important things before you decide to become an insurance member.
Many insurance companies offer home insurance with different coverages and benefits. Sometimes, this protection can be a trap if you’re not careful. You should first understand one by one the protection of each of the advantages.
- Claim process
The claim process is also very important before deciding to take out insurance. Hassle-free and inflexible claims can get in the way in the event of an incident.
Those are the things you need to know about home insurance. Are you familiar with this type of insurance?