Frequently-Asked Questions for Home Insurance

What is Home Insurance and what does it cover and how does it work?

Home insurance policy is the combination of personal insurance protection and home insurance to protect you from potential risks that occur at your home. Usually, it offers coverage against theft, fire, lightning and any other major hazards that the homeowner may face. The cost of your home insurance depends on the cost and value of your insured property. The insured person needs to pay customarily a premium to the insurance company. It can cover the loss or damage of your home due to:

Flood, earthquake, storm, lightning, cyclone, tornado, hurricane, aircraft damage, missile damage, explosion, landslide, terrorism, burglary, mechanical or electrical breakdown etc

Home Insurance, is it Compulsory?

Home insurance is a good way to protect your home, the biggest possession of your life. It is not a legal requirement to buy home insurance. With such insurance, you can protect your asset, your biggest investment.

Home Insurance, why is it necessary and important and what are the main considerations

Your house is the costliest asset of yours. Any type of catastrophic devastation can damage the structure of your house and a big dent to your pocket when you need to reinstate the house back to its original conditions. It can make your dream house completely not livable and this is the key reason that the house owners or even the tenants require to have home insurance. You will be mentally stress and financially strapped when you are not covered and having home insurance can save you from all this.

When you are buying home insurance, you need to keep in mind a few important things:

You need to check how much coverage you need and break down the different cost to find the actual estimate. Firstly you need to check the right cost of home rebuilding and set it as the base amount for your insurance. It is also important to check which parts can be covered by the policy including the damage caused by flood, smoke, fire or lightning. You need to check if there is any deductibles before purchasing the home insurance.

Another consideration is choosing the content of the house to be covered. Eg furniture, electronics, renovation, etc.

Home Insurance, what is the difference between owner-occupied or non owner-occupied?

The difference between owner occupied's insurance and a non owner occupied's policy is that a owner occupied's policy is for an owner-occupied residence. If the house is not owner-occupied but insured on a owner occupied's policy there will be a coverage issue should a claim occur.

When you buy a home as an investment and their intention is to rent the property, they'll need non owner occupied or landlord’s insurance – not owner-occupied insurance. Landlord’s insurance provides coverage for someone renting out a home, apartment building or condos.

You may want to take a look at our home insurance offering.