It feels good working hard to acquire a home (house), whether through building or outright purchase. The pride you feel is unmatched and you cherish the moments living in it. But the story does not always end there. Sometimes the unexpected happens – be it burglary, fire, floods, etc. – and though you did not have any control over it happening, you certainly could have hedged against the risk!
Home insurance is your backup plan, and I’ve got you covered on how. After the fire, flood, burglary or a collapse, I – an insurer – will restore to you that which you have lost: if only you insure your most valuable asset, your home. Let’s talk about home insurance, shall we?
Your home can suffer damages and losses to the building, the contents or both. Here are some common examples of losses that can affect our most prized assets:
Fire – when the smoke comes with fire
Fire outbreaks can be triggered by electrical wires and appliances in our homes. It could be from faults in wiring, defects in air-conditioners and stoves or gas-cookers. Fire damage is severe and can destroy all our properties, including the entire building and its contents.
Flood – water everywhere it should not be
Floods and rainstorms occur mostly during rainy seasons – wrecking houses, ripping roofs off structures, breaking walls, and destroying contents. Sometimes, burst pipes and overflowing water-tanks cause floods.
Collapse – when things crumble
Buildings crumble when there are cracks and defects caused by a weak foundation, heavy weights, poor quality building materials and locations – leading to loss of the structure and valuables inside.
Burglary – unwanted visitors
Whenever there is a visible, violent and forceful entry into or exit out of a building to steal valuables, we say burglary has occurred.
How is home insurance a backup plan to secure you?
You transfer your risks to an insurer (insurance company) when you buy home insurance. You pay a fee called the ‘premium’, with the promise that you, the insured, will be paid compensation to the value of the items (home and its contents) you insured at the time of the loss – so you can get back to the position you were in before the unfortunate happened!
Insurance covers the cost of rebuilding, removal of debris, rental cost for temporary accommodation if the home is rendered unfit for occupancy, or the reimbursement of stolen items in a burglary.
Home insurance options are many. Take them individually or comprehensively.
- Fire insurance policy – Fire as a standalone policy covers ignition, lightning, and the actual fire. The policy can be taken for both the building and its contents.
- Fire and Allied Perils Insurance policy – This covers you against fire as well as other perils such as flood, impact, earthquake, civil commotion, aerial droppings (droppings from aircraft or space). Ensure you include the allied perils for a comprehensive cover. This policy can be taken on both the building and its contents.
- Burglary Insurance – This covers against theft through burglary. Insurance will pay compensation only when there is visible, violent and forceful entry into or exit from the building. This applies only to home contents, since the building cannot be stolen.
- Combined fire and burglary insurance – Covers the insured against fire, allied perils and burglary. However, you must ensure the allied perils are expressly included in the policy, as the allied perils are not usually named on the policy.
- Homeowner’s insurance policy – This comprehensive policy covers fire, allied perils, burglary, collapse, domestic staff, public liability (liability to third parties) and may include rent for temporary accommodation.
- Householder’s comprehensive insurance policy – Designed for tenants to cover belongings as well as landlord’s fixtures and fittings. It also pays for temporary accommodation.
Getting your home and its contents insured so you can sleep well…
- Buy insurance for the building alone, building and contents, or contents only against any of the named disasters. To insure your home (house and/or contents), approach an insurance company; for example, Hollard Insurance and speak to your Relationship Manager on what suits your needs. Check www.hollard.com.gh for more.
- Disclose all material facts pertaining to your home; ask questions, read the terms and conditions, know the exclusions and be convinced you are buying the right insurance policy!
- Declare the right values of the assets you want to insure, fill-in a proposal form and be insured at a little fee for that peace of mind. 😊
- Remember to renew your policy to avoid unwanted surprises.
Keep in mind
Insurance policies may bear the same or similar names, but not all insurance policy covers are the same. They differ from insurer to insurer. Read the terms, conditions and policy exclusions very well.
You cannot claim on a home left unattended to or unoccupied for a stated number of days, usually more than thirty (30) days. Inform your insurers if you will leave for such long a period.
What’s the point insuring your home?
There’s no place like home. Have a plan B and secure your home and its contents, because you shouldn’t have to worry about what could happen. Enjoy your home!
>>>The writer is a Relationship Manager at Hollard Insurance and can be reached on 0249947183