What is home insurance policy ?

Home is where we live being happy with family and many other possessions that covers some valuable proportion of our property and is a greatest possession of our life as well. We can't be happy and satisfied until and unless we feel secured while living in, so everyone seeks to give best protection for their home.

We can protect our home from any unpleasant incidents with different security measures like physical and financial. But the financial protection is the best way because we can not protect from any loss or injuries by physical protection if natural calamity is happened. The financial protection gives us financial recovery for the loss and damage of our home if we have insured already.

Home insurance is provided by many insurance companies and some financial institutions. The different companies have their own insurance policy, terms and conditions on this regard depending on the country and region. A certain amount is paid as premium for the insurance till the certain time period.

The home insurance policy may include insurance of building, contents, all risks and liabilities. The insurer can claim for the damage of some belongings of the home but not everything. The insurance policy of a particular region mentions the excluded and included items in the home insurance. Generally following items are considered in the home insurance policy:

Building Insurance

Buildings insurance will cover structural damage to the buildings. This normally includes roof, walls, windows, doors and permanent fittings such as hardwood or tiled floors and kitchen fittings. It may also include sheds and garages. In general the following hazards are covered: • Fire, explosion, lightning or earthquake. • Vandalism and riots. • Burglary or attempted robbery that results in damage to your home i.e. fixture & fittings. • Water or oil escaping from burst pipes or a burst water tank.

Always review the insurance schedule and terms and conditions to ensure you understand what is and what is not covered.

Contents Insurance

Contents insurance will cover loss or damage to the contents of your property.

• Loss or damage to items on a ‘new-for-old’ basis (up to certain limits). • Accidental damage to household equipment, for example, a computer or stereo (you may have to pay a higher premium for this benefit). • Loss or damage to items you temporarily remove from the house. This does not generally include glass or fragile objects. • Food that has spoiled in a fridge because of a power failure or freezer breaking down.

There is a limit on the value you can claim for any individual item. So you may need to list certain valuable items, such as jewellery or antiques separately on your contents policy. Always review the insurance schedule and terms and conditions carefully.