10 Benefits of Home Insurance
Insurance is an activity carried out by individuals to protect an asset by paying to other parties who will later provide material protection to the asset.
There are various kinds of protected assets, including lives, cars, and houses. Each type of insurance certainly has its own benefits, as well as home insurance. There are various Property Insurance Benefits To Protect Valuable Assets that you need to know.
There are not many people in Indonesia who insure their homes. In fact, there are many house rental activities, as well as the risks such as fire. Here are the benefits of home insurance that you should know.
1. Main Residence Protection
The main reason for a home insurance policy is to protect your primary residence. Imagine the total loss of home damage that you will bear in the event of a fire or natural disaster.
Ideally you should insure your home for 100% of its value. However, 80% to 90% can be said to be a sufficient percentage. In the event of damage, whether minor or major damage, the total cost of replacement will be covered by most insurance policies.
2. Protecting Other Parts of the House
The second most important component of insurance for homeowners is coverage for separate building structures such as garages, sheds, dog houses, fences, pet kennels and other types of detached buildings.
Typically, separate structures are covered up to 10% of the coverage limit for your primary residence. However, you can adjust the policy if you want an additional percentage that covers the separate building structure.
3. Protecting the Inside of the House
When you apply for insurance for your home, you will need to take an inventory of all the appliances, furniture, electronics, and other personal property in your home. The contents of the house you choose will be covered by the insurance policy. This will also be a Property Insurance Benefit if you purchase the policy.
If the inner property of the home is damaged due to an event such as a natural disaster, you may be eligible for partial or full replacement, depending on the specific terms of your policy. This is a home insurance benefit that is often overlooked.
4. Protection from Theft/Theft
Theft or robbery is of course one of the things that almost all homeowners worry about. But unfortunately, knowledge about home insurance is still very minimal for the public, especially in Indonesia.
Home insurance will cover any loss caused by robbery or theft. In fact, some home insurance policies can also cover workers who work at home from cases like this. This is one of the important benefits of insurance for the community that should be known.
5. Cost-Effective Protection
At first, home insurance may seem like an unwanted or insignificant expense. However, investing in a home insurance policy can pay off when you need it most.
Today, several insurance companies offer home insurance policies at competitive premiums. These premium rates are definitely worth paying for when you see the coverage you get in return.
6. Liability Coverage
Some households usually employ a 3rd party to do some of the work in the house and every job has risks. Home insurance can include protection for things that are not desirable.
You can make a claim when faced with problems arising from accidental death or property damage faced by your employees. This includes medical expenses for those injured due to property damage.
Workers should also know the Benefits of Personal Protective Equipment in the Workplace and apply it to avoid the consequences that occur due to work accidents. Employers must also have safety standards for workers so as not to harm each other.
7. Temporary Living Costs
If the house you are insured for has suffered some damage and is uninhabitable until you rebuild/renovate it, you may have to find a temporary place to live.
During the rebuilding/renovation process, if you rent a place to stay temporarily, the insurance company will cover the costs you incur to pay the rent. The maximum limit for this rental payment depends on each insurance company.
8. Facilitate Loan Application
Rejection of a loan application to a bank is not a new thing. Therefore, many parties must prepare everything to make an application, one of which is collateral or guarantee. Before applying for a loan from a bank, first know the Benefits of Bank Interest for Customers.
Some banks give preference to their customers who have an insured home. For certain financiers, home insurance is, in fact, one of the main eligibility criteria for availing a home loan.
9. Covers Fire-Related Liability
Fires due to electrical short circuits are quite common and affect not only one house, but also fire in adjacent houses. Of course, the house that is the source of the fire will bear the loss.
Times like this are called unexpected events, if you don't have an insurance policy for your home, then you have to pay a very large amount of compensation in an instant. It's different if you have an insurance policy that will cover the cost of the compensation.
This is also one of the Loss Insurance Benefits that guarantees you to be able to keep running your business when a fire occurs. Even though you have to pay for the insurance policy, your business will remain stable and the profits will cover the policy costs incurred.
10. Help During and After Emergencies
Emergencies cannot be predicted, what can be done now is to be prepared when they occur. An insurance policy for your home is very important as emergencies are unpredictable.
In addition, the insurance will also help you prepare for a normal life after experiencing an adverse event. In addition to home insurance, car insurance benefits for motorists are also very important for Indonesian people who use private vehicles a lot.
Buying an insurance policy is not a disadvantage if you remember the benefits that will be obtained after having it. Each insurance company may have different policies that you should ask before buying a policy.
Paying your insurance bill every month may be overwhelming for some people, but it's better to pay off the expenses of an unforeseen event than to let an emergency drain all your savings and property one day.