Home Insurance-Always be prepared for the unexpected.

Home Insurance-Always be prepared for the unexpected.

  

Getting home insurance ensures you are protected from unforeseen threats

Your home is your biggest investment. It houses people and things that are most important to you. Most of us know all about how our homes work but are clueless about how our home insurance works. You can legally own a home without having insurance but that would be rather unwise, leaving your loved ones as well as your belongings open to the threat of disaster.

Home insurance generally covers three things: structure, belongings and liability. Structure refers to the building) roof, walls, stairs, and others).home insurance typically covers fire, water from busted pipes, damage due to hailstorm, and others. Most insurance policies do not cover earthquakes and floods, and you have to buy a separate insurance for that.

Belongings refer to all things in your house, so insurance covers you from theft as well. It is useful to have a home inventory so that you know exactly what you have and how much they are worth. When it comes to belongings, you are insured up to a certain limit only. You may need a separate insurance for high-value items such as gold and jewelry.

Liability refers to accidents happening to others in your home premises. High-risk areas for such caese are the pool, trampoline, or even the stairs. Your home insurance protects you against law suits as well as takes care of the medical expenses of others. Most insurance policies also cover living expenses wherein in cases of an accident such as a fire or flooding from broken pipelines, you may have to stay in a hotel.

Once you are clear about your needs and budget, work with an independent agent who can present suitable options. You can get a professional assessor to help you assess your risks, valuate your property, and suggest a suitable coverage. Ensure your coverage is large enough as building and labor costs are continually on the rise. If you make any additions, inform your insurance agent to increase the coverage. This may not increase your premium hugely, but will definitely buy you peace of mind. When buying the insurance, specifically ask for what it does not cover

Remember, life is all about being prepared for the unexpected.

Home Insurance Tips

Home insurance, in general, covers the structure, belongings, and liability

Most insurance policies do not cover damage caused but natural disasters

Ensure your insurance cover is large enough as building/labor costs are rising

 

Understand the types of property insurance policies

Understand the types of property insurance policies

Getting your home insured ensures peace of mind during unforeseen eventualities

When availing of a mortgage or a home loan, the borrower makes a fixed monthly payment known as equated monthly installment (EMI) towards its repayment to the mortgage provider. This payment is primarily made up of interest and capital components.

However, there are additional payments like mortgage life insurance and property insurance that the borrower is also liable to pay. Both insurance policies have a common objective to provide a safety net is case of eventualities at a certain cost. To make an informed decision, it is important to familiarize yourself with the costs.

A mortgage life insurance aims at protecting mortgage repayments. If the borrower dies during the length of the policy, the insurance company undertakes to repay the mortgage debt and the family members of the insured are able to retain a roof over their heads. In the UAE, banks charge in the range of 0.35 per cent p.a. to 0.4 per cent p.a. of the outstanding loan amount as mortgage life insurance, deductible either monthly or yearly. However, in cases where the mortgage amount is exceptionally high or depending on the overall health of the borrower, this percentage may vary.

A property or home insurance safeguards the home owner in case of damage to the property or its contents by virtue of theft, fire, natural catastrophes and or accidents. It is a simple and very affordable means to insure one’s valued possessions. As a standard across banks, this is charged at 0.05 per cent p.a. of the property value and is deducted yearly.

In today’s times, one can no longer proceed with a mortgage application without availing of mandatory insurance policies. Home loan providers and banks do an excellent job of stressing on the importance of the same, and rightly so. Above all, thorough knowledge of these aspects makes the monthly budgeting easier from a borrower’s point of view. These little steps, put together, often go a long way to ensure peace of mind during unforeseen tragedies and provide sufficient protection against potential mishaps.

Mortgage Tips

A mortgage life insurance undertakes to repay the debt if the borrower dies

For mortgage life insurance, UAE banks charge from 0.35 and 0.4% annually

A property insurance safeguards homeowners in case of theft, fire and others

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