Home is the main need that can provide protection, while providing a sense of warmth and peace for you and your family. However, the process to get a house is quite long, starting from the saving phase, choosing a house, applying for installments to the developer , to renovation.
With the effort and time it takes, of course you are compelled to provide extra protection for your home, one of which is insurance. Then, how important is home insurance? What are the benefits? And, how to choose it? All these questions will be discussed in depth in this article. Come on, let’s discuss one by one!
What is House Insurance?
Insurance is a form of risk control between the two parties which is usually protective. There are many types of insurance that cover the cost of treatment to repairs. In general, home insurance is a product of a corporate entity to provide protection against losses due to fire, theft, or damage caused by natural disasters. Also keep in mind, insurance for residential homes is only used in non-industrial buildings.
The general term for this insurance is property insurance, which provides coverage for property damage such as houses, industrial buildings, office buildings, and others. In addition, there is also construction insurance which provides protection against damage or loss during the construction or installation of construction installations.
How Important Is Home Insurance?
Insurance is one of the important things that you must have, in order to feel comfortable, safe, and calm while occupying the house. Because this insurance can reduce the cost of losses due to unwanted things, such as natural disasters including earthquakes, floods, and so on.
Home Insurance Benefits
There are many benefits that you can feel if you have insurance for your home, here are some of them.
Providing Protection from Disaster
For those of you who live at the foot of the mountain or coastal areas that are prone to natural disasters such as landslides and floods, housing insurance can be the best choice.
In addition, it also provides protection from being struck by lightning, explosions, falling airplanes and the risk of fire even though the firefighters have tried to extinguish it. This type of insurance can provide a choice of products to cover a number of damages caused by these disasters.
Not only houses, insurance can also provide coverage for property in the house, whether it is lost or damaged, riots, strikes, riots and so on.
Home insurance not only applies to protecting the “physical” part of the property you live in, but it can also replace and cover the property you are renting out to someone else. For example, a disaster occurs and the tenants of a residential building are injured because the building collapses or collapses.
Usually in this case the tenant will legally sue the property owner.
If that happens, the insurer will be responsible for the settlement of the lawsuit filed by the tenant.
Theft always lurks in all types of housing indiscriminately. This will surely frighten you and take extra precautions to protect your home. After implementing several anti-theft home protection systems to protect the contents of the building. You should also have insurance in case the worst case scenario can happen.
So, property insurance for living is very suitable for those of you who live in crime-prone areas, and do not have security systems such as CCTV in windows and or one gate system doors . Renovation costs for homes that have been heavily damaged by natural disasters or fires are certainly very expensive.
There are many unexpected expenses when doing home repairs, from hiring a handyman, repairing the foundation to the roof of the house, and much more. If you already have the right property insurance policy, you certainly don’t have to worry about these costs anymore.
Can Give A Sense Of Security
The main benefit of home insurance is that it provides a sense of security, especially when various disasters come to your home. Today many insurance companies are born in various regions in Indonesia, not only in big cities. Even in some small cities and regencies, there are various branches of insurance companies that you can visit.
Types of Home Insurance
Before choosing the right insurance, you must understand and know about the types on the market, such as:
Property All Risk (PAR) Property All Risk Insurance is insurance that provides coverage against all risks that occur.
Although it is the legal responsibility of the insurer to provide compensation for all problems, there are several claims that this insurance cannot cover , namely: ?
– Mechanical damage
– Business interruption
This type of insurance only applies to offices, landed houses, schools, hospitals and other property buildings.
Tips for Choosing the Right Insurance
Well , you already know the various types of property insurance. Now is the time to start choosing and buying the right and profitable insurance products. But before that, you must understand very well about the insurance products offered so as not to suffer losses and be able to take full advantage of their products. Here are some tips that you can try before coming to the insurance office:
Find out the details of the condition of the house
When you are going to build or buy a house , of course you are told about the specifications of the house, from the materials used, the utility system, to the amount of electricity.
If you find that there are construction materials that can cause fires or break quickly because they are unable to withstand the load of water, then you can choose the right insurance product for these conditions.
Get to know the products offered by insurance
Before coming to an insurance company, it’s a good idea to look for information about the products they offer on their official website . You can learn all product details while understanding the condition of the house, the environment and the natural conditions around the dwelling.
In addition, you can also choose insurance that only covers certain risks with an adjusted coverage value. For example, if you feel that your neighborhood is less safe from crime. This is so that you can get insurance products that suit your needs and the conditions of your home.
Choose Products from Several Insurance Companies
Each insurance product has its own advantages and disadvantages. If you don’t want to be burdened with premium payments, claim processing, and unexpected costs, you can look for insurance information from various companies.
Insurance Company Background Check Do not just choose insurance because the products offered are very tempting.
Choose a company that is trusted and has a good rating in the eyes of the public.
It’s the same as checking the legality of the developer , you have to pay extra attention when choosing an insurance company.
Understand the Contents of the Contract Agreement
When you understand home insurance products at a credible company, then you can buy insurance products. In the purchase process until signing the contract, you should ask again about the details of insurance claims. Study and re-read the contents of the agreement one by one, so that nothing is burdensome when paying insurance premiums.
This includes the provision of receiving compensation if the house has problems.
Then, can this insurance be disbursed? Yes, as long as in this case insurance is used as a condition for applying for a loan. If you have home insurance, loan funds can be disbursed immediately after being adjusted to the applicable terms and conditions.
In other words, this insurance can be an indirect guarantee if the loan is not paid on time. Lower Expenses
Bearing the Risk of Theft