Image source: Pexels.com
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.