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Many people tend to view home insurance as a luxury rather than a necessity. Once you’ve bought a home, you would never want to see it getting damaged or lost in any way.

It would be a harrowing experience. Unfortunately, these are things that have happened to some people. The experience would even be more painful if you do not have a home insurance policy.

A home insurance policy covers your home against accidental damages or loss.

In the sections that follow, we are going to explore the three most essential covers that should be ins your home insurance policy.

1. Damage or Loss

Home Damage or Loss insurance
Source: marketwatch.com

Damages or loss is the main essence of having a home insurance policy.

The policy covers your home against any accidental damages or loss. This cover includes accidents by fire or systems breakdown in the house.

Hurricanes, lightning, vandalism, burglary might also cause damage to your home. The insurance company will compensate you for the cost of repairing the home or completely rebuilding it if need be.

There are natural calamities such as floods, earthquakes, tsunamis, and hurricanes that are referred to as “acts of God” in the insurance world.

A basic home insurance policy does not cover these. You’ll have to include separate riders to your plan to get cover for these.

That will significantly raise the premiums you are supposed to pay. The rise will be proportionate to the risk of these calamities happening.

This cover also includes the possessions that you might have in the house. In most instances, the coverage for positions is calculated as a percentage of the value of the home.

If you have any high-value possessions in your home, you might need to insure them separately.

Such a cover would compensate you for their loss separately. For instance, if you have expensive jewelry in the house and it burns down.

2. Personal Liability for Damages of Injuries

Personal Liability for Damages
Source: miginsurance.ca

This kind of cover protects you against lawsuits that might be filed against you because of the happenings in your home.

For instance, you might invite someone in your home, and they suffer an injury as a result of being in your home.

For example, they could slide over a slippery floor, fall, and get injured.

They could sue you for such injury. Personal liability coverage protects against such liability if you are sued and ordered to pay.

This cover could also include acts by your pets. It is an essential cover as you do not know who could be out there seeking to take advantage of the activities going on in your home.

3. Hotel or Rent During Repair of Rebuilding

Rent During Repair of Rebuilding
Source: iconiclife.com

If your home is damaged or lost, you will most likely have to check into a hotel.

Hotel expenses rider on your home insurance policy, you won’t have to worry about such expenses because you will be compensated for them.

You would not have to disturb your friends or family by seeking accommodation from them while your house is being rebuilt.



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