Home insurance, known as property
insurance, is one of the insurance policies and it is designed to provide
coverage in case of any damage caused by any unpredictable reasons to your
property’s structure and possession. Home insurance is a legal agreement
between insurance company and its client.
As an insurance policy, home insurance combines individual’s insurance
protections including loss of home damage, loss of use and loss of other
personal possessions of the homeowner. So it can be said that home insurance is
committed to provide coverage in the event of any losses occurring to your
home. It is also a policy of multi-line insurance which includes both property
insurance and liability insurance.
The first Home insurance in USA is
introduced in September 1950, but other similar insurance policies were existed
in Britain and in the areas of USA. From the first, homeowner’s insurance is to
provide the same coverage assurance of the people who are in need of repairing or
replacing their house or possession in the event of damage or loss of home or
home necessaries.
The coverage of home insurance
depends on what it would cost to repair or replace the house and which
additional riders are attached to the policy. This home insurance contract is
committed on the basis of a definite time or a fixed period of time. Clients are committed to make payment to the
insurance company, which is called premium. It can be term wise as it is very
important to meet deadlines. As a result every client or insurer must pay the
premium each term.
If your home appears less likely it
will be damaged, then the insurance company can charge lower premium but it has
also opposite action; for example, if your house is beside fire station, then
it can be risky to be damaged. So it is worth saying that a safe area of your
house can make lower your premium.
To get assurance of safety of the
property, most mortgage companies need homeowners to have sufficient coverage
through home insurance policy.
Ultimately insurance company would
like to take care of client’s concern in need of their demand. In addition,
there are some property insurance policies which include your garden in items
of coverage policy.
Finally, if you are homeowner, then
you should have a home insurance policy by considering all laws of it, so that
you can meet your coverage in the event of any unexpected damage or loss.
