What is Homeowner Insurance
It is a system under which the insurance company and insurance holder are agreed upon. Insurance companies promise to render services in the event that may be accidental occurrences.
As a result, this led to loss during a given period of time. In other words, it is a method of coping with risk. Its basic functionality is to provide substitute certainty for uncertainty as regards the economic cost of loss. Homeowner Insurance.
Kinds of Insurance:
Insurance Companies in Pakistan are of two types:
There are two main types of Contracts one is a homeowner and the other is the commercial plan. Furthermore, these contracts are divided into four parts: Insuring Agreement, Identification of the covered property, conditions & stipulation, and exclusions.
In a community that is governed by a homeowner’s association or HOA, there is a possibility that you could end up paying less for individual homeowner insurance than the average homeowner.
This happens because homeowner associations are responsible for buying insurance that covers all the public areas of the development.
Homeowner Policy Provides:
Although they are infinitely customizable, a homeowner’s insurance policy has certain standard elements that provide what costs the insurer will cover.
Personal Liability for Damage:
This liability provides you coverage from lawsuits filed by others. For instance, if your dog bites your neighbor. In this case, your insurer will pay your neighbor’s medical expenses.
Hotel or House Rent:
If you are repairing or renovating your home. For that, you need to add more living expenses. For instance, you rent a room in a hotel or restaurant and other meals expense. Homeowner insurance policy can provide you coverage for any charges of a hotel room.
Actual Cash Value:
It will cover all your costs of the house and those things that are your belonging after deducting depreciation.
It covers the actual cash value of the owner’s home. It also provides coverage for any possession without the deduction for depreciation. As a result, you would be able to repair or rebuild your home like it was new.
This policy is the most comprehensive one. In the policy, the company is responsible to pay for the repair or rebuild of your home. Certain insurance company offers an extended replacement.
Cons of Homeowner Insurance:
In homeowner insurance policy the company will not pay the loss if any natural disaster occurs such as Earthquake, Flood, Tsunami, etc.
Maintain a Security System:
Security System such as burglar alarm monitoring system is directly related to a local police station. It helps homeowners to pay annual premiums, perhaps by 5% or more.
Look for Multiple Policy Discounts:
There are other insurance companies that give a discount to customers if they buy more insurance contracts under the same roof such as home, vehicle or health insurance, etc.
Plan ahead for Renovation:
Home renovation is necessary for a home after a few years. If you plan to renovate your home. Material such as wood-framed, Paint, and Cement is required. All these materials may cost you so much that you cannot afford all this by yourself.
For that, you Plan ahead for a Renovation insurance plan. This will cover all your expenses required for home renovation.