Home Insurance

Home insurance is very important, whether you're a fresh college graduate looking for an apartment to rent or a newly wed couple planning to buy a house. Home insurance protects one of your biggest financial assets -- your house -- during unforeseen circumstances such as theft or natural disasters.

What exactly is home insurance and what does it offer?

Home insurance is basically a package policy that offers coverage not only for the actual home or building where you live, but also to its contents and detached structures such as sheds or garages. Another benefit of having home insurance is that you're protected from liability if someone gets injured while staying in your home or property and he or she sues you for it. Just keep in mind that some banks and lenders usually check first the insurance policy of your home before granting a home loan.

Tips when looking for home insurance

When looking for a home insurance policy, make sure to compare packages first from various providers. Always read the exclusion list carefully to make sure you don't miss anything. Although home insurance policies vary from one provider to the next, these policies are generally categorized into three types -- standard home insurance, broad form policies, and comprehensive policies. Standard policies offer protection from numerous named perils, which can include specific kinds of water damage, theft, lightning, windstorm, and hail. Broad form polices offer protection against all risks, although these plans will still have exclusions. As for comprehensive home insurance policies, they offer protection on an "all risks" basis for both the actual building and its contents.