Recognised as a good investment for the entire life; purchasing a home is one of the most important decisions that you will ever have to make in your life. One of the pre-requisites after one has bought their home is to take adequate protection. Protection from what? Protection from any sort of damage to your house by a natural or external event that may leave you financially drained.
Home Insurance is a type of property insurance that covers a private residence. Combining several different personal insurance protections, this insurance policy includes all the losses that occur to one's home, loss of use, the contents of the house, loss of personal possessions of the homeowner and any form of liability insurance as a result of accidents that may occur at the home.
A term contract, this type of insurance policy is taken for a specific (fixed) period of time; after which the policy has to be renewed. The person taking the insurance (insured) has to pay the insurance company (insurer) a certain amount of money on a regular monthly basis known as the premium. There are many different factors that affect the premium amount that the insured has to pay the insurer.
However, there are also circumstances/factors where the insurer will charge the insured a lower premium amount if it appears that the home is less likely to be damaged or destroyed. For instance, if a house is located next to a fire station, if the house exhibits wind mitigation measures, etc. There are also cases when, in certain areas a person may also purchase a type of home insurance without a fixed term; the coverage exists for perpetuity.
