Our homes are likely to be our most important asset. It is no wonder – it is our place of refuge, our place of peace, and the most valuable thing we own. Like many other Kiwis, you will want to protect your home from unexpected damage or loss.
But how does insurance protect your home? We have put together the 3 most important reasons to grab house insurance when you purchase a property. Read on to also learn about the different types of house insurance!
1. Protect Against Damage or Loss
In life, things can happen. Your home could fall victim to burglary, fire, flooding, or a natural disaster. If an unexpected event ever occurs, house insurance can help. Your house insurance policy can cover the cost of rebuilding or repairing your home if it is damaged or destroyed.
2. Protect Against Liability
Your house insurance can also protect you against any legal liability. For example, if a house fire damages your neighbour’s house, you will be legally liable for the damage. If you accidentally damage someone else’s property, you can use your house insurance policy to cover some of the cost of repairs.
3. Help you in an Event
Your insurance policy may also be able to help you after an event such as a fire. If the home is uninhabitable, your insurer may be able to help you find temporary accommodation. They also may be able to help organise the repair of your home or help replace your house lock and key if you are at risk of burglary.
Types of House Insurance Cover
In New Zealand, there are different types of insurance, as is with all different kinds of insurance. It is important to do your homework and research the different types of cover and how much you want to pay, to see what cover you can get.
- Basic policies: this type of policy will typically cover major events such as fire, theft, or flooding.
- Comprehensive policies: this type of policy will cover you for major events and accidental damage caused by you or your family.
Levels of House Insurance
- Fixed sum insurance: This is the sum that you and your insurance agree your home is insured for and the amount they will pay up to if the home is damaged or destroyed.
- Indemnity (present day value): this amount covers what your home was worth right before the damage or loss. The insurer will rebuild or repair your home up to that limit.
- Total replacement: Your insurer will pay to rebuild or repair your home up to the total amount you insured for. They will pay all the fees and demolition costs involved in the repair or replacement process.
Compare House Insurance
While there are plenty of house insurance policies available on the market, they are not all made equal. It is important to compare house insurance policies side-by-side to make sure you are making the most fully informed decision about such an important insurance. Money Compare makes such a task easy and simple. Money Compare shows you all the policies and providers available to you so that you can see what is out there and on offer, and thus, choose a policy where you will get the most out of your hard-earned money.
Protect your home and peace of mind. Save money on insurance with Money Compare!
