Home Insurance

Home Insurance

Home insurance is something we often overlook until an incident occurs. Many people believe it is only required for bank loan applications, but in reality, its coverage extends far beyond just the home’s structure. To make it easy to understand, I have divided the coverage into three main levels as follows:

1. Fire Insurance (The Essential Base)

This is the type that banks require when you apply for a loan. It focuses on covering damage from:

• Fire, lightning, and cooking gas explosions.
• Vehicle-related damage (e.g., a car crashing into the house fence).
• Aircraft-related damage (e.g., objects falling from a plane).
• Water-related damage (e.g., burst pipes, water leaking from the floor above—but please note, this does not include flooding).

2. Additional Benefits Insurance (All Risks)

This is what I recommend for homeowners who want extra protection, as it covers more everyday incidents:

• Theft: Covers assets inside the home in case of burglary (requires visible signs of forced entry).
• Natural Disasters: Such as storms, earthquakes, and floods (which standard fire insurance usually does not cover).
• Glass Breakage: Covers the breakage of glass that is fixed to the building structure.
• Third-Party Liability: This one is very important! For example, if a flowerpot falls from your home onto someone else’s car, or a water leak from your house damages a neighbor’s property, the insurance will help cover the compensation.