Realekom
Active member
Home insurance is a form of properties that covers losses and damages to an individual's residence, with furnishings and other assets in the home. Home insurance also provides liability coverage against accidents in the on the proposed property.
UNDERSTANDING HOME INSURANCE
A home insurance policy usually covers four kinds of insidents on the insured property ie, interior damages of personal asset/belongings and injury that occurs while on the property.
When a claim is made on any of these incidents, the homeowner will be required to pay a deductible which in effect is the out of pocket cost for the insured.
For instance if a claim is made to an insurer for interior light damage that has occurred in a home, the cost to bring back the property to a good condition is estimated by "claims adjuster" to be around ₦100,000, if the claim is approved, the homeowner will immediately be informed of the amount of their deductible say's ₦40,000 according to the police agreement between two parties.
The insurance company will issue a payment of excess cost , in the case of ₦60,000.
So the higher the deductible on an insurance contract, the lower the monthly or annual premium on a homeowners insurance policy.
Every home insurance policy has a liability limit which determines the amount of coverage the insured has, should any unfortunate incident occur. The standard limits are usually set at $80,000, but the policy holder can opt for higher limit, if a claim is made, the liability stipulates the percentage of the coverage amount would go towards replacing or repairing damage to the property structures, personal belongings and cost to live somewhere else while putting the property in order.
BENEFITS:- some benefits of home insurance includes the following:
1. Protection of the main structure
2. Covers home content
3. Protection from disasters
4. Inexpensive
5. Covers extra living expenses
6. Peace of mind
7. Liability coverage
8. Fulfilling mortgage requirements.
UNDERSTANDING HOME INSURANCE
A home insurance policy usually covers four kinds of insidents on the insured property ie, interior damages of personal asset/belongings and injury that occurs while on the property.
When a claim is made on any of these incidents, the homeowner will be required to pay a deductible which in effect is the out of pocket cost for the insured.
For instance if a claim is made to an insurer for interior light damage that has occurred in a home, the cost to bring back the property to a good condition is estimated by "claims adjuster" to be around ₦100,000, if the claim is approved, the homeowner will immediately be informed of the amount of their deductible say's ₦40,000 according to the police agreement between two parties.
The insurance company will issue a payment of excess cost , in the case of ₦60,000.
So the higher the deductible on an insurance contract, the lower the monthly or annual premium on a homeowners insurance policy.
Every home insurance policy has a liability limit which determines the amount of coverage the insured has, should any unfortunate incident occur. The standard limits are usually set at $80,000, but the policy holder can opt for higher limit, if a claim is made, the liability stipulates the percentage of the coverage amount would go towards replacing or repairing damage to the property structures, personal belongings and cost to live somewhere else while putting the property in order.
BENEFITS:- some benefits of home insurance includes the following:
1. Protection of the main structure
2. Covers home content
3. Protection from disasters
4. Inexpensive
5. Covers extra living expenses
6. Peace of mind
7. Liability coverage
8. Fulfilling mortgage requirements.
