Your home is your haven especially in a place like New Zealand and having the right type of house insurance for your home will help protect against all kinds of risks, losses and damages. You don’t want something bad to happen to your precious home only to realize later that its insufficiently insured.
Home insurance will indemnify or compensate you the home owner for any risk, loss or damage caused to your home due to natural calamities like earthquakes, storms, cyclones, floods, storms, rainwater, wind, hail and snow. It will also protect your home against fire, lightning, explosion/implosion or any kind of destruction or damage caused by aerial devices.
Here are a few important things to keep in mind before taking home insurance –
- What is the extent of cover being provided by the insurer or insurance company? Does the insurance policy cover basic events or does it cover a wide range of accidents?
- What is the mode of occupancy of the house? Is it being rented out or sublet? Does it have outsiders, boarders and non-family members? Do you run a bed and breakfast service? Are the premises unoccupied? All these factors will affect the insurer’s decision as to whether they are keen to insure your house or not and if so the terms of the insurance. This information is very important and has to be disclosed openly and correctly to the insurer otherwise you can be caught when somebody makes a claim and you’ve provided the wrong information.
- What is the limit of legal liability covered by the insurance policy?
- Is the insurance company providing a repair guarantee?
- Is the insurance provider giving you any additional benefits such as fraudulent use of credit cards or tax audits?