While it is exciting to own your own house, a new house brings with it a great deal of additional responsibilities including maintenance. If you are making the purchase of the house with the assistance of a home loan, banks will require you to have building insurance to assist with the costs should the physical structure be damaged. Once you consider the benefits of having of having building insurance you will be thinking about it more often and getting excited about it!
#1. Provides protection of your main dwelling
The main reason to have building insurance is to protect the property you live in. Imagine dealing with a total loss due to a house fire or extensive and expensive damage due to a natural disaster. You should replace your home at 100% of its value. Minor damage, major damage and total replacement costs will be covered by most policies.
#2. Protect your detached structures
The second most important component of building insurance is coverage for your detached structures, which can include garages, sheds, fences and more. Normally detached structures are covered up to certain coverage limit but you may be able to add on additional coverage for detached structures on your property.
#3. Protect yourself against unforeseen circumstances
Having building insurance can protect you against costly damage caused by unforeseen circumstances. For example, if the geyser burst, the insurance will cover its replacement and any consequential loss up to a certain amount such as the costs of replacing tiles and painting.
#4. Protection against liability
A benefit that is not well known by most, this section on your building insurance can be of help in the event an incident happens like a fire or mechanical damage which could include your neighbor’s house. It provides protection against these costly incidents and may also cover the medical expenses of a guest injured on your property.
#5. Loss of use
If your house becomes inhabitable following an insured event, you may be forced out of your home while it is being repaired or rebuilt. A solid policy will help cover excessive costs like accommodation, food and travel costs. Yet another benefit of insuring your home.
So who should get building insurance? Anyone and everyone who has invested a large amount of money, hard work and emotions into it. Be sure to shop around, research and zero in on the right cover that will suit your requirements. Make sure you understand the terms and conditions before committing to anything. Lastly, one of the biggest benefits of building insurance is that it offers you a certain amount of peace of mind, which is priceless.