Whether or not you live in an apartment or a two-storey house, there is no doubt that you need to insure it with home buildings insurance. Having insurance will give you peace of mind knowing that if anything happened to your property you are covered.
There was a story in the newspaper recently about a family who discovered asbestos in their house and it cost them a lot of money to remove as they did not have home insurance.
Home buildings insurance is actually composed of two types of coverage. The first one covers the permanent structures, like the toilet the toilet and bathroom fixtures, and the kitchen. The second type of coverage covers the contents of your house. Both types of coverage are important, and if you do not have both of them yet, you should get a quote from the internet right now.
How much coverage do you need? This is the question that most people ask but rarely ever get an answer for. When it comes to covering the permanent structures, it should be equivalent to the cost of rebuilding your house. If your house was burnt down to the ground, how much would you need to have it rebuilt?
The cost of rebuilding the house is typically lower than the market value. You can get an idea of the cost of rebuilding by hiring a surveyor. If you have your mortgage documents with you, the cost of rebuilding would be on it. As for the cost of covering the contents of your house, it should be equivalent to the cost of buying brand new items. On a side note, there are indemnity policies that take into account the wear and tear of an item. While indemnity policies are cheaper, they only pay for the cost of the current value of the lost item. So, if you lost a 10 year-old TV and you file a claim for it, the insurance company will only pay for the current price of the TV, not when it was bought. On the other hand, if you pay for a new-for-old policy, the lost item would be replaced with a new one.
The thing about home buildings coverage is that there’s no such thing as a cookie-cutter policy. In other words, there is no one single policy that can meet all of your needs. This is the reason why, no matter what you do, you should always get a quote from at least three insurers. No, you do not need to get your quote individually. There are websites out there that act like a portal where you only need to enter certain information and the website will look for insurance policies that fit your property best.