Home Insurance Dwelling Coverage

Reasons for taking Home Insurance Dwelling Coverage 

Securing your precious home:

The home is the most precious thing that an individual possesses after his family. There are lots of memories attached to house that one lives in. The emotions, happiness and pain of making 4 walls a home have much more value than the actual worth of the house. Everyone is too attached to his home. So why should an individual risk the most priced possession that he has.

Secure your home from potential risks:

The mere thought of losing your home can give anyone a headache. No one even wants to thinking about an uninvited event that makes you lose your most priced possession. However, if you really want a secure future then one has to think about these issues and take steps to protect himself form the potential threats.

Your home is at risks from everywhere may it be electrical short circuit a breakage in gas line or natural disasters such as floods, earthquakes, tornado etc. These risks hover over your dream home at all times. It takes just minutes or seconds to bring your home down to ground. This sort of a financial loss is huge and unbearable. That is why everyone should get a home insurance dwelling coverage to save his home from these dangers and threats.

Eligibility for home insurance dwelling coverage:

Just by having a home one cannot get covered by home insurance. There are various criteria’s that are to be fulfilled before getting a home insurance dwelling coverage.

The property should belong to only one owner and he should be the one living in it. One cannot get insurance if the home is mortgaged or if a loan is taken against the property. The owner is required to do the maintenance work of the home from time to time. The home should have security features such as security cameras or fire fighting equipments. The property should be in good condition.

Restrictions in home insurance

One of the best security measures an individual can take is to secure his assets is by taking a home insurance. By taking a home insurance an individual secures his property and assets from being destroyed and not being compensated for the same. Incase a calamity strikes, one can consider the home insurance to compensate for the cost that is incurred due to the mishap.

Hence, we can save a lot of hard-earned money in those circumstances. Different companies have different set of rules regarding the risk they cover or the risks that they do not cover.

Damage to the building due to negligence:

The damage that is caused to the building or the structure of the home due to negligence such as development of cracks or corrosion from water pipelines etc. These problems get unnoticed for quite long and when the issues are in there worst condition then the maintenance become too expensive for an individual to bear. If an individual lives in a place where there is wear and tear in structure of the building due to natural of environmental conditions one should seek for the policy that has coverage for that.

Damages caused by wars:

The damages that are caused by wars are not covered in home insurance policies. The home insurance policy may cover the damages caused by local riots. The damages from nuclear radiation or nuclear accidents are also not covered in insurance policies.

Geographical area prone to natural disasters:

If your home is in a geographical area that is prone to flood, then you might find it very difficult to get a home insurance policy that covers the damages caused by floods. Similarly if someone has a house on hilly area, he will have a hard time finding a policy that covers damages from landslides.

House Insurance – Various Aspects

Since house is the fundamental necessity, securing it against all the dangers is also an important task.

Perils and risks covered under house insurance

Under house insurance both operate, made as well as natural calamities are covered.

These can be:

1. Fire-which can be caused externally as well as internally, by accident or willfully.

2. Earthquake-some places are in the danger zone of earthquake while others are not. For example in India the Uttrakhand region is an earthquake prone area while Madhya Pradesh has least earthquake occurring possibility.

3. Explosion/implosion-it may be \caused by terrorist or by some accident like exploding of the LPG gas cylinder.

4. Aircraft damage-some houses are located in the vicinity of airport where there is constant threat of an aircraft damaging the house by collision.

5. Damage from gale, storm, tornadoes, high-speed winds-houses in some states of United States of America face constant threat of damage by tornadoes and winds.

6. Damage by explosion of water tank, sewage pipe, water pipe.

7. Damage caused by rock sliding, land sliding-houses in hilly areas face this type of peril.

Assessing the house and its valuables

The inspection team of the insurance company does assessment of house and it’s valuable. The house is assessed on the basis of area it covers. The market valuable are assessed on the basis of current market price of these items. The firm fixes combining these, the policy rate, and premium rate, which is to be paid by the policy buyer.

Other aspects

Some people live in rented homes. They think that insurance is not needed. But house insurance of jewellery, costly items should be done so that In case of theft and burglary the person can get compensated.

People living in the housing society have their insurance done by the society itself. This insurance covers limited areas .Full insurance can only be achieved by getting individual insurance. One important aspect is that business which are run in house is not covered under house insurance by many firms.