Home Owner Insurance

Home owner or household insurance is designed to protect and cover against the possible risks you may encounter if you're a homeowner. It is split into two main categories, buildings and contents insurance.

Buildings insurance covers the structure of your building in the event of natural disasters and possibly other accidental damage (a burst water pipe for instance). Contents insurance provides cover for the possessions in your home should they be stolen or accidentally damaged.

Factors to Consider

Many factors go into determining the premiums for a homeowners' policy. The age of your home, the materials used to build it, where it's located, the square footage, and the number of rooms, all play a role.

Basis of Premium for Homeowner Insurance

To ensure you are getting the best possible deal, shop around, evaluate and compare all the appropriate policies that provide the cover you need. Think about policies in terms of price, coverage, excess, flexibility and the reputation of the insurer.

An insurance company will base the premiums on a combination of factors including the value of the house and its contents, your postcode, the type of house you live in and your claims history. For example, people living in inner-city areas tend to get charged more because insurers believe there is a higher risk of burglary.

Economy in Home Owner Insurance Plan

If you plan to use the home for any business purposes, of if you plan to rent all or part of the house, your liability will increase. On the other hand, if your home is equipped with an alarm system, smoke detectors and deadbolt locks, you can save money on your homeowner insurance plan.

You can also expect to pay more if you are located in a higher risk area, such as a coastline.

Latest News on Home Owner Insurance