Home insurance FAQ

What is home insurance?

Home insurance is an agreement between the insurance company and the customer that the insurer will pay out a sum of money stipulated in the policy in case the customer's house gets damaged or destroyed in the course of an event stipulated in the policy. If said simple, through home insurance the insurance company assures to repair or rebuild your house in case it gets damaged by fire, lightning, windstorm or other calamities indicated in the policy.

Why would I need home insurance?

Home insurance isn't mandatory (unless you take out a mortgage and the lending company makes you to) but it's definitely a very useful product if you have such a valuable asset as a home. Home insurance protects you financially in case something happens to your house. For example. A lightning strikes a tree near your house and the fire jumps on your entire house. After seeing your house being burnt down you will have to pay for rebuilding it out of own pocket, which will cost a lot of money. Not if you have had home insurance that would reimburse you the entire cost of rebuilding the house.

What situations are usually covered?

The set of situations usually covered by home insurance policies depends on each policy so you have to pay attention to its contents when purchasing it. Usually insurance companies offer coverage in cases of fire, lightning, wind, snow, explosion, terrorist attack, burglary and additional types of damage. There are also additional weavers you can purchase to get protection against specific perils such as tornadoes.

What is standard home insurance?

Standard home insurance is a general term denoting the most basic and widespread form of house insurance. It features coverage against some of the most common perils such as fire, lightning, wind, burglary and others but usually excludes flood and earthquake damage that require weavers to be bought separately.

How do I save money on home insurance?

The best way to save money with any type of insurance is shopping around and home insurance isn't an exclusion. The main idea is to get quotes from different companies, compare these quotes and choose the most competitive offer. This way you can find really good policies that will get you all the coverage you need for a very fair price. And that's pretty much what really affordable house insurance shopping is all about.