There is no place in the world that is better than our homes. Home is a place where you grow up wanting to leave and grow old wanting to come back. And, owning one is a dream that many of us cherish. Though buying and owning a home is a task that most know how to go about, most of us are unaware of how to protect it against any unfortunate circumstances. That is where Home Insurance comes in.
However when applying for home insurance, most of us tend to confuse the home loan insurance with home insurance. Though the terms are related to your home, their characteristics and benefits are different. This article explores the difference between home insurance and home loan insurance and how you benefit from home insurance.
Home Insurance Vs. Home Loan Insurance?
A home insurance or homeowner’s insurance is the shield and the assurance you need that your safe haven is protected against threats like fire accidents, burglary, vandalism or any natural calamities like floods, earthquake or tsunami. On the other hand, home loan insurance protects the home loan that has been availed to purchase the home from any liabilities.
The Insurance provider also takes responsibility for settling the outstanding loan amount in case of the buyer’s demise or his/her disability to repay the loan. With that being said, your home insurance does not protect you if your home is seized because of the default of payments in the home loan. So, it is advisable to have home insurance and home loan insurance to protect you from any sort of liability, especially if you have an unstable income.
When to apply for Home Insurance?
It is ideal to apply for home insurance right after you purchase or finish construction in order to protect your home, for you invest your life’s savings in it. Home Insurance plans cover your home and its belongings from all liabilities that arise out of any of the adverse events. It also covers the cost of maintenance or replacement of damaged belongings.
Benefits of Home Insurance?
Apart from the above-mentioned covers, here are the other benefits that your home insurance protects your home from.
1.An exhaustive coverage that includes your home, possessions and additional structures like garages, backyard, pool, etc.
2.Guards your assets from any liabilities
3.Since the home insurance settlement claim process is hassle-free, it helps you rebuild your life and go back to normalcy easily.
On the whole, home insurance keeps you stress-free and relieves your tension of any unprecedented events because you have your umbrella ready to protect your home in the form of home insurance. It is always better to be safe than sorry!