Eazy Tips: Reasons Why Your Home Should Be Insured
- August 18, 2021
Home Insurance is the insurance that covers both your house and the property within the house against disasters like fire, flood, earthquake, storm, vandalism, explosion, lightning, and other unknown/unforeseen disasters. Homeowners insurance isn’t a luxury as it is most often perceived. Rather, it is a necessity, although it may not be so popular among Nigerians due to the fear of the cost incurred.
Contrary to popular opinion, the cost of acquiring a home or any kind of insurance is relatively affordable. Home insurance coverages are usually for either fire or burglary damages. To determine the premium to be paid to the insurance company, 0.25% multiplied by the value of the property for fire and by 0.45% of the value of the property for burglary – the reason being that a burglary coverage factors the value of properties inside the house, while a fire coverage only takes into account the value of the building itself.
For example, a house worth N2,000,000 will cost N5000 premium to be insured against fire and N9000 to be insured against burglary. That is actually quite affordable in the grand scheme of things! Most people pay a premium on a monthly basis, but others choose to pay the annual cost in a lump sum.
It is important to note that the basic goal behind buying home insurance or any kind of insurance is to make you financially whole after a loss. Given that most homeowners shy away from home insurance, we didn’t expect to convince you right away. Not until you know the reasons why your home should be insured.
1. It provides a replacement for your loss
Home insurance gives you financial security with the added benefit of replacing your insured belongings. Based on the home insurance policy you have opted for, you can now get your damaged goods replaced instead of merely claiming an equivalent amount of money for your loss.
2. It protects you from natural disasters
Taking up the expense of repairing a damaged house is every homeowner’s nightmare. It is a burden you don’t need to put yourself and your family through, especially when they are dealing with the fallout of the disaster financially, emotionally, and in various other aspects. Therefore, a home insurance plan that covers you during natural calamities like floods, landslides, and earthquakes is advisable.
3. It is not expensive
Though a home insurance policy might seem like an unwanted expense, the benefits provided by the scheme far outweigh the cost.
4. It protects you from lawsuits
Based on the type of policy you have opted for, you can protect yourself and your family from property-related lawsuits. Your home insurance will cover you during the unfortunate incident of you accidentally damaging another property, like in the case of a fire or mechanical damage. Additionally, it will also cover the medical expenses of a guest injured on your property.
5. The protection is not just for your home
An extensive home insurance policy does not only protect your building but also all the components in your compound like your garage, shed, deck, and even your fence. Similarly, you can opt for add-ons in your policy and protect the contents of your house like your furniture, electronics, and valuable home appliances.
6. Above all, it provides peace of mind
Getting your home insured provides you with the ultimate luxury anyone can ask for; peace of mind. Whether you own an apartment or a mansion, once you have selected your policy and paid your premium, protecting your property is no longer your responsibility.