You've decided to rent or buy a house. This exciting adventure brings not only a new chapter in your life but also the responsibility to protect your investment. Think about getting the right insurance for your home.
Home Insurance (Building Insurance):
Building insurance, is mandatory when taking out a mortgage to buy a house. For a rental property, the landlord typically arranges this. Building insurance covers damage to the property itself caused by storms, fires, burglaries, and other risks. This coverage safeguards you against unforeseen repair costs.
Household Insurance:
Household insurance is not mandatory but highly recommended. Household insurance covers damage to your personal belongings inside your home. This damage can be caused by you or by water, fire, or theft. Essentially, everything that is not fixed to the property, including the floor, falls under household insurance.
Liability Insurance:
Liability insurance is not mandatory but strongly advised. This insurance covers you against damage to another person or their property. As an example, you have a fire in your house and it breaks out to your neighbors, they could hold you liable. With liability insurance, you're covered for this. This also applies if, for example, you accidentally knock over a friend's TV.
You're also covered if your pet bites another person, which could lead to medical expenses and potential legal claims. Liability insurance can cover the costs of medical treatment and legal defense.
In short, just as you take the time to find the right home, you should also make the necessary effort to educate yourself about the insurances you need. This ensures you establish the right foundation for a carefree and safe living situation.
