Knowing the benefits – and pitfalls – of any service before parting with your hard-earned cash is a must in any circumstance. When sorting out home insurance offers, too many people take the first offer, leaving themselves with insufficient cover. Look through the advantages of home insurance below – together with the negatives – and make an informed decision when it comes to finding a policy.
- So, what are the Advantages of Home Insurance?
- Are There Any Disadvantages in Having Home Insurance?
So, what are the Advantages of Home Insurance?
An advantage of home insurance for one individual may only benefit some. This is because lifestyles, house sizes, and personal needs differ. But the following factors will benefit all, regardless of your financial status.
1. Cover for the Worst Possible Scenario
However unlikely it may seem, an incident may occur in your home that requires a partial or full rebuild. An electrical fire is just one common scenario that can greatly damage a home. Add to this the likes of criminal damage or a freak storm, and the cost of rebuilding your house may be well in excess of any savings you have. It’s much easier to sleep at night knowing you won’t need to sell a kidney if your roof flies away during a gale.
2. It Can Go Beyond Your Home
Theft or accidental damage to beloved items can be greatly upsetting. Even if certain items are deemed irreplaceable, financial compensation can ease the pain somewhat. Home contents insurance protects you against damage or loss to specific items and can cover you even when they’re outside of your home.
Contents insurance can become complex, depending on the value and nature of your possessions. See our article on What You Need to Know About Artwork Insurance for more information.
3. Coverage for Matters Beyond Your Control
Most home insurance policies will cover you against many natural disasters. Natural calamities like storm damage may cause severe damage to your property and can happen anywhere in the world.
4. Protection Against Liability
Home insurance can cover you against any liability, including any effects on a neighbouring property. A fire may not be your fault, but you may be legally liable to pay the costs if the damages incurred affect the house next door.
Imagine being responsible for paying for huge repairs to not one property but two. Liability protection is one part of home insurance that is overlooked but can be vital to maintaining a healthy bank balance.
5. Peace of Mind
If the cost of home insurance causes concern, consider this against having peace of mind, which is priceless. It only takes one incident to change everything and throw life into disarray. The right insurance can help you go about your business safely, knowing that you’re covered financially should anything untoward occur.
For an in-depth look at the particulars, read our post on What is Home Insurance?
Are There Any Disadvantages in Having Home Insurance?
Home insurance has many advantages, but there can be downsides, too, given that we sadly don’t live in a perfect world. However, instead of allowing any disadvantages to put you off from sourcing a policy, knowing the following can give you power when finding a deal for your circumstances.
1. No Insurance Will Cover Every Eventuality
Even though home insurance can be highly comprehensive, no insurance will cover every possible eventuality. If you live close to a river or ocean, getting cover against external water damage may not be possible – likewise, if your area is prone to earthquakes.
Other instances that you may not be covered for concern terrorism or war – these are obviously beyond your control. Still, most insurance providers harbour a war exclusion policy within their contracts.
2. If You Never Claim, Things Can Get Costly
A US survey found that 70% of home insurance policy owners have never made a claim. Given that the average mortgage is over 20 years and lifetimes more than 70, insurance payments can add up over time. As with any financial investment, it’s up to individuals to weigh up both sides of the deal and decide what’s right for them.
3. Understanding the Small Print
Almost anything legal or monetary-related can be tricky for the average person to understand fully, and home insurance is no exception. At GasanMamo, we keep our plans in plain English and as clear as possible; using some specific terms may be unavoidable. Other providers may not take the same care level when writing their policy.
For example, an insurer may clearly state that you’re covered against the following:
- Accidental Damage Cover
- Damage to Locks
- Storm Damage
- Break-In Damage
- General Property Damage
- Damage to Buildings
- Wear and Tear
However, it’s common to find unique stipulations regarding what this coverage means from a particular provider. You may not be covered against break-in damage if your levels of security have been deemed insufficient. Remember to read the finer points of any deal and question anything unclear with your provider.
Just as buying a home is a big decision, choosing insurance should never be a five-minute job. As with anything in life, there are pros and cons when it comes to home insurance. Being aware of these is a great help when it comes to finding the right deal, enabling you to find a policy with the right level of coverage for your needs and at the right price. Ensure you are aware of and fully understand the terms and conditions of any policy before finalising any deal.
Begin your search for the right plan by looking through our clear and transparent benefits on our home insurance page.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.