The Importance of Property Insurance


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One way to protect your family and to make sure that everyone is safe is by protecting your household and your property. That’s why property insurance should be at the top of your priority list.  

There are many ways in which you can secure and protect your assets and your properties from natural disasters to home invasion and everything in between.

Unfortunately, half of the Australians don’t have an insurance policy that could fully cover their assets. And without insurance, recovering after a disaster or emergency can be very difficult, especially financially.

Having a home insurance policy can provide compensation for any loss or damage to your home or property due to any of the above-mentioned causes.

Buying a property, a house or an apartment will likely be the greatest purchase you’ll ever make, so you must know the importance of property insurance.

If you’re considering investing in property insurance, but you’re not sure why you should do so, here are 8 things you should know about insurance and its importance.

1.     Financial protection

Having an insurance policy can be of great help, especially in extreme cases like home invasion or fire. In case anything happens to your property or your assets during a fire or theft, for example, if you have property insurance you’ve got nothing to worry about.

If your insurance policy covers the property and belongings, you’ll be protected financially. This means that what you lost or what was damaged will be compensated to you.

2.     Alternative accommodation cover

Apart from financial protection, most insurance policies will provide you and your family with alternative accommodation in case of extreme cases like loss of home during a fire.

With an insurance policy, you will have a roof over your head even if your home is so damaged that you can’t continue to live there.

How exactly does this work? Well, your insurance provider should pay for you to stay somewhere (a hotel, Airbnb, and other lodgings) while your home is being repaired. You can claim for alternative accommodation cover in case there is structural damage to your home from smoke, fire, storm, or flood, in case of severe vandalism or severe leaks and burst pipes.

Of course, every insurance policy is different and it covers different things, so it would be wise to check what your insurance covers in terms of alternative accommodation cover.

3.     Insurance against accidents

Accidents happen almost all the time and it’s often that you see all kinds of home accidents and damages. From cutting wrong pipes to unintentional mishaps such as wine spills on new carpets or floors, accidents are bound to happen.

But does your insurance cover against accidents? It might, depending on the type of insurance policy you have. Some insurances include accidental damage cover and you can easily replace or repair the damage.

If this is something that your insurance doesn’t include, you can easily add it on. Once again, it’s convenient to have this type of insurance because accidents can happen all the time.

4.     Legal protection

Apart from all the physical protection of your property, you’ll need to protect yourself and your home legally. This is especially important if you are looking to purchase a property and a seller isn’t the most trustworthy person.

Additionally, having an experienced property lawyer can always come in handy. Whether you’re selling or buying a property, making an investment, or if you simply need legal advice a property lawyer is your safest bet.

So, if you’re looking for a trustworthy law firm, property lawyers from Sydney can help you with anything you could possibly need that has to do with the legal side of owning a property.

5.     Mortgage insurance

Mortgage insurance is there to protect the lander rather than you or your property, but still, you should have it.

In case you’re looking to buy a property with a mortgage, you must have mortgage insurance otherwise no lander will give you a loan. This is important for mortgage lenders because this way they are financially protected in case you are unable to pay the loan.

You don’t always need mortgage insurance unless you’re looking for a mortgage loan, then you’ll be required to have mortgage insurance.

6.     Protecting yourself from a liability claim

Liability coverage is another thing many insurance policies cover. Unfortunately, this part is often overlooked even though it’s very important. Liability coverage protects you in case someone gets injured on your property.

A guest, neighbor, or any visitor can accidentally hurt themselves on your property and this is where liability coverage would come in handy. When you have it, you can easily cover the costs of medical bills or even lawyer fees, in case someone decides to make a liability claim against you.

7.     Home emergencies cover

Every insurance company has tradesmen appointed to help you 24/7 in case of a home emergency. Maybe you have a plumbing issue, maybe your heating has broken, or maybe someone broke your door or window. These issues are something that you’d want to be fixed as soon as possible.

Once again, this is where having an insurance policy can help a lot. Also, make sure you know what is considered a home emergency before you call to make a claim.

Most insurance policies have home emergencies included, but in case they don’t, you can always add them on later.

8.     What insurance doesn’t usually cover

Insurance policies can cover most of the things and you can always add more things that need to be covered by insurance later on. However, basic insurance policies usually don’t cover damage caused by neglect and faulty maintenance, damage by earthquakes and floods.

Floods and earthquakes are considered gradual events rather than sudden or accidental, and that’s why they aren’t covered by the standard or basic insurance policies, but you can add them on or buy them as separate policies.

Having property insurance is important since it helps you recover after a disaster or an emergency. However, purchasing property insurance isn’t an easy job. It requires research and finding exactly what fits your household's needs.

So, before you settle for the first property insurance policy you see, make sure it covers everything you need.

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