Your home insurance plan most likely follows the basic outline of most home insurance plans around the country. That is, it will most likely cover damage that occurs to the structure of your home and other structures on the property (like a shed), liabilities you incur should someone be injured on your property, and damage to objects you store in your home, as well as extra costs of living that you may incur should your home become uninhabitable.
A basic home insurance plan, however, is not without its loopholes. Certain events that may fall under one of the categories listed above may not be covered if the cause is one that the insurance company precludes.
For example, a common loophole can be found in the structure of home coverage outlined in your home insurance plan. Say you find that you have termites and that now the foundation of your home is destroyed and needs replacing. Most insurance companies will not cover this, because the termites were most likely there before you purchased your home.
Another interesting loophole can be found in coverage of your personal belongings. The effects on your home and property due to natural disasters such as earthquakes and floods ? especially in the aftermath of Hurricane Katrina ? are not covered in most basic home insurance policies. Should your home be flooded as a result of excessive rain, your insurance claim will not be honored. However, should your home be flooded because the pipes break, then the damage to your belongings and home will be covered.
Make sure you read the fine print in your home insurance contract carefully and consider possible loopholes. If necessary, purchase extra home insurance coverage so that you will never be caught by surprise.
The necessity of purchasing home insurance is not the same for all. Necessity wise, there are three categories of people who buy an insurance policy for their homes. First, there are the homeowners who do not live in their homes; these people insure the building only. The reason is that they do not live in their homes; and hence, they have nothing to do with the possession of the home.
For these people, the damage of the building matters, not the contents of the home; so, they go for the home insurance that covers only the physical structure of the home. Secondly, there are the people who live as tenants. They are not the owners of the building; so, for them the building does not matter. Rather, they are concerned with the contents of the home. Thus, they prefer the insurance policy that covers the contents in a home.
Then there is the group of people who own the home and live in it as well. For them, the physical structure of the house as well as its contents is important. So, they need the home insurance policy that covers both the home and its contents. In order to meet the needs of all types of insurance purchasers, agencies offer customised insurance policies.
While purchasing home insurance policies, it is necessary for the clients to do research work. The research should include a lot of things: from collecting information on cheap and suitable insurance policies to knowing about the details of the terms and conditions. People living in certain areas or with certain profiles may get lucrative concession on the cost of the home insurance policy. Research is helpful in updating oneself on all these things.
Both Ken Charnley & Smith James are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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