Your home is the biggest and most important investment that you’ll ever make over your lifetime. That means you must take the required measures to protect it so that it will provide you with equity if you need to apply for a loan, plus owning a home is widely considered essential if you’re to retire comfortably, or at all.
Most homeowners wouldn’t dream of going a second without a good home insurance policy but as recent research shows, many homeowners are either uninsured or underinsured, usually the latter. If you’re to protect the biggest investment you’ll ever make, a good home insurance policy is a must.
It May Be Required by Your Lender
If you have a mortgage, there’s a very good chance that you’re obligated by the contract to have home insurance. There may be stipulations about the amount of cover you’re required to take out, but this really isn’t important as there are far more important reasons for taking out home insurance than just meeting your contractual obligations.
Your foremost priority should be protecting the investment you’ve made in your home, so if you need to find out more about personal insurance in Malaysia and why it’s important, that’s something that you’re going to hear a lot more of. What’s more, you need to know what to look for when comparing home insurance policies, so give some thought to:
- The period the home insurance policy is available for. Terms are usually between one and five years.
- The suitability of the policy. Some policies are better suited to apartment owners than detached homeowners, for example, so make sure the policy is suitable for your needs.
What’s more, be sure to read the fine print before deciding on a policy you believe to be suitable.
It Provides You with Protection
This is the reason why you should be in possession of a good home insurance policy – because it protects your home. A basic home insurance policy will provide protection for your home as well as any additions you’ve added (like decks, sheds or balconies) as well as your personal belongings and even injuries suffered by a friend if they hurt themselves at your home. That’s very important. Here are some other things that are covered by a basic home insurance policy:
- Other properties. If the strong winds of a storm take something from your property and it causes damage to another person’s home, you’re covered by the insurance policy.
- Temporary accommodation. If a natural disaster caused damage to your home, like a storm or flood, the insurance company would provide you with temporary accommodation.
- Personal property. If your home was broken into by thieves and your personal possessions were stolen, you’re covered by the policy and you’d receive replacements.
As you can see from these examples, home insurance isn’t something that anyone should go without. If you’re not covered by a good insurance policy or you’re worried that your present level of cover isn’t enough, it’s time to get searching for a suitable policy from a leading insurance company.