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Top 4 Home Insurance Policy for a House for Sale

Updated: 6 days ago

The housing market is tense now, but if you managed to get hold of a house for sale, you could move on to the topic on Home Insurance.

Maybe you already had a house for this, and you know how it works with home insurance.

But if you will live on your own or come from a rental home, the theme 'Home Insurance' is topical for you.

The most important question is, of course:

What is a Home Insurance Policy?

In summary, a Home Insurance Policy is an insurance policy that covers damage to your home because of, for example, fire, bad weather, or burglary.

What is covered by a Home Insurance Policy?

That varies per insurance policy. And for homeowners, there are other insurance policies for tenants.

An overview of the top 4 home insurance policies of an owner-occupied home can be found in this article.

  1. Home Insurance

The most important insurance policy for you as the owner of an owner-occupied home is the Home Insurance Policy.

This insurance covers damage to your home due to, for example, burglary, lousy weather, or fire and resulting damage such as extinguishing or explosion damage.

Appraising your house is usually not necessary for home insurance, even though the insurer must pay out in the event of damage according to the value of the object that has suffered damage.

The insurer does this based on available documentation from various sources. Building insurance has different types of cover.

It differs per insurer and per type of insurance which covers precisely what applies or does not apply. It is therefore essential to delve into this thoroughly.

  1. Property Insurance

Property Insurance covers damage to all items in your house, and that is not attached to the house.

Simply put, this concerns your furniture, clothing, and all the household goods that you have brought into the home over time.

Property insurance is not mandatory, but it is a sub-part of a Home Insurance Policy. Hence, it is advisable to take out one.

Preferably at the same company where you took out the building insurance to immediately suppress any discussion about damage.

Whether the damage is for the home insurance or household insurance account, it does not matter if the paying insurer is the same.

  1. Life Insurance

A Life Insurance policy is not compulsory in the USA or UK for a few years, no longer for houses financed with a National Mortgage Guarantee.

Banks can sometimes set the requirement to take out a life insurance policy for a certain amount.

The term life insurance ensures that in the event of death, the required housing costs can nevertheless be paid by the surviving relatives of the insured.

An insurance policy ensures that your partner does not have to move if you should die and therefore no longer bring in income to pay the mortgage.

  1. Liability Insurance

Taking out Liability Insurance is also not compulsory for owners of their own house, but this is also advisable.

Imagine what happens when your roof tiles blow off the roof and fly through the windows at the neighbors.

Think how significant the damage is when your water pipe bursts and sets the neighbors' house blank.

You cannot usually do much about such things yourself, but the damage caused by them is at your expense.

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A Home Insurance Policy can sometimes be quite expensive, but you now know which four insurance policies should not be missing from your insurance package.