Insurance

Every Home Deserves Home Insurance

Every home deserves home insurance

A home insurance is by and large a must for everyone. If you have a home (and it has well most?) do you need a home insurance if you want to feel financial security, otherwise, you will not get a rotten penny in compensation if someone breaks into your home, exposes it to vandalism or should a fire occur, as simple as that. But a home insurance policy protects so much more than just your home and only that makes it worth acquiring a home insurance policy.

Home insurance protects your property

Property protection provides compensation in case of theft and damage to the property belonging to your home and this also applies if you are robbed of the property outside the home. For example, if you are on a road trip and something breaks into your car and steal your belongings, you will be reimbursed, but please note that insurance companies have certain prudential requirements when it comes to theft property outside the home. You cannot, for example, leave your laptop fully visible in the car and think that you will be reimbursed if it is stolen. When it comes to such things as computers, mobile phones, tablets and cameras, all insurance companies tend to have special care requirements.

Enough about that. Now let’s look at what the home insurance property protection covers instead.

This is covered by home insurance

  1. A home insurance policy provides compensation for any property you have in your home should it be stolen or damaged. It can be about home furnishings, clothing, appliances and consumer electronics.
  2. If you have a home insurance, the home itself is also protected against damage, fire, lightning and the like as well as burglary.
  3. Removal guard. Home insurance also includes a removal cover that means that the things you transport between your old and new home are insured.

Personal protection

There are also several protections for you as a person in home insurance. This is what they look like:

  1. Legal protection. If you find yourself in a dispute about your home or property, you will be helped with legal costs and legal costs. However, legal protection does not apply to such matters as divorce disputes and the like.
  2. Liability insurance. For example, if you have accidentally broken someone else’s property and are claimed for damages, you will be helped by the insurance company. First, the insurance company checks whether the claim for damages is reasonable and if so, they usually try to negotiate down the amount of damages. If the parties do not agree and the case ends up with the court, the insurance company’s lawyer will represent you in court.
  3. Crisis protection. Should you and/or someone in your family suffer a traumatic event such as assault, robbery or fire, you will receive compensation for a certain number of hours at a psychologist if desired.
  4. Assault protection. If you are assaulted, you may receive compensation for violation and your injuries, unless you have started the conflict yourself.

Excellent travel protection

All home insurance includes a travel cover that is valid for 45 days. This protection is so good that it is really unnecessary to take out a separate travel insurance if you are not going to be out of town for longer than 45 days. This includes:

  1. Compensation in case of accident and illness. Should you or any other insured person end up in hospital after an accident or illness, the insurance covers medical fees, medical expenses and even repatriation if necessary. You will also receive compensation for emergency dental care.
  2. Compensation for lost travel time. If you get really sick or injured during the trip so that you cannot assimilate the trip as planned, you will receive compensation. However, you need to present a sick leave certificate confirming your illness or injury, so be sure to tell the doctor that you need to get a sick leave certificate.
  3. Help with early return home. If your trip has to be canceled due to terrorist acts, natural disasters or wars, the insurance company will pay for your return. This also applies if someone close to you suffers from a life-threatening illness or has died in the country.
  4. You can also be replaced if you miss your flight due to a car accident or similar.

To think about when taking out home insurance

  1. Keep an eye out for your theft-desirable property outside the home. If you are stolen after having forgotten your laptop in the car or have not watched your Mobile on the bus, it is not at all certain that you get compensation.
  2. Calculate how much your property is worth before you take out a home insurance policy. If you find it difficult, the insurance company can help you with an approximate assessment, otherwise, you can look at what standard values different properties have on the consumer’s website.
  3. Please note that the remuneration you receive is based on the market value, not on the purchase value. For example, if you suffered a fire and had a bed worth $575 5 years ago, you might just get a thousand in compensation for it.
  4. Consumer electronics drop very quickly in value so if you want to get good compensation for your 2-3-year-old consumer electronics items, you should get an additional insurance against depreciation.

Supplementary insurance

You can also add one or more additional insurance that gives your property an extended protection when you take out a home insurance. The most common additional insurance is:

  1. All risk insurance, also known as grape insurance. This is an excellent supplementary insurance because it also replaces damage that you yourself accomplished. All-risk insurance protects against unexpected and sudden accidents, for example, if you drop your tablet in the tub or spill coffee over your laptop, and that is why it is called all-risk insurance. If you live in a villa and want a double insurance that also protects the villa itself from unexpected damage, there is also an all-risk insurance that protects the villa. This applies if, for example, you accidentally damage a wall when you are redecorating.
  2. Electronic insurance. This kind of additional insurance protects your consumer electronics and your cameras against large value reductions, so if you have expensive consumer electronics at home recommend Grayaction.com strongly that you acquire such insurance.
  3. Extended travel insurance that extends beyond 45 days.

There is also a little rarer additional insurance that you can supplement your home insurance with, such as for example:

  1. Collection insurance. This insurance protects your valuable collection, such as coins or medals, and replaces its entire value should the collection be stolen.
  2. Golf insurance. Golf equipment is expensive things and therefore a golf insurance can be out of place if you are passionate about the sport. Then you will receive compensation if the equipment is stolen or destroyed, whether it is your own equipment, if you borrow or rent.
  3. Ad valorem insurance. If you have expensive and valuable possessions in your home, such as jewelry or paintings, these can be insured separately if you really want to be on the safe side.

Do you live in a villa?

If you live in a villa, you should take out a villa home insurance instead of a separate home insurance and villa insurance. On the one hand, it usually gets cheaper, and on the other, it is much smoother if something should happen because you do not have two insurance companies involved.

You can read more about the protection of your villa in our article about villa insurance, but in short, it protects the villa itself, not the property.

About the author

Frank Ramos

Frank Ramos

Hello, I am a savings economist at GrayAction and an expert in personal finance. I hold a master's degree in economics from Stockholm University. I hope you will enjoy reading my articles on finance categories on the site.

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