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A Guide for Beginners on How to Insure your Home

A Guide for Beginners on How to Insure your Home

Whether you buy a home, or rent a home, you should take out home insurance to protect not only your property but your belongings as well.

Regardless of how many precautions you take, your home remains vulnerable to fires, natural disasters (such as earthquakes, floods and heavy storms) and robberies. So, if you do not want to spend your valuable savings on repairing your home or replacing lost items, you should consider buying a homeowner's insurance.

Since there are a number of insurance companies in Pakistan, there may be confusion between the different packages offered by each provider. This is where this guide comes into play. Here's how you can insure your home, what kind of insurance costs are incurred and what these plans entail and how buying home insurance can help you in the event of an unfortunate event.

Home Insurance:

In the beginning, the home insurance is also referred to as homeowner's insurance, home insurance, and property insurance, so you do not have to confuse between the names. Like other types of insurance, this insurance provides protection for households and their contents. In the event of a break-in, fire or other disasters in your plan, your insurance company will be required to compensate you according to the plan you have chosen. Not only that, but home insurance can help you repair your home and save a lot of money in the long term. However, you have to keep in mind that the compensation that you receive in a claim varies by policy, as each provider sets different limits.

A Guide For Beginners On How To Insure Your Home

WHAT DOES IT MEAN?

If you want to take out home insurance, you need to know what cover it offers. Granted, almost all insurance companies offer different coverage plans that differ from the premium. However, most home insurance plans offer cover for cash, jewelry, and house contents. In most cases, cash includes both currency and price bonds. Jewelry is usually covered at home or in a locker. Some providers also offer a certain percentage of home insurance protection for jewelry that has either been stolen or lost during transit between home and locker. Jewelry includes gold, silver and diamond sets as well as designer watches and other accessories that exceed a certain limit (usually around 50,000 PKR). With regard to home contents, the list usually includes electronic appliances such as televisions or home theater systems, refrigerators, air conditioners, cameras, smart phones, laptops, and computers. Other items such as furniture, carpets, upholstery, crockery, dishes, and clothing are also insured in the household contents insurance.

HOW DOES THE HOUSEHOLD INSURANCE WORK?

The home insurance serves as a safety net for your property with building materials and other consumer goods rising, most homeowners may find it difficult to build everything from scratch. However, if your home is insured, all you have to do is claim and the insurance company will take care of the rest.

If a homeowner suffers damage, he should contact his insurance agent as soon as possible to assess the situation and determine your compensation. The application process may take some time, depending on the premium and coverage, but it remains very important as it can help you get back on track.

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