Home and buildings insurance
Home and buildings insurance protects your home and its content from fire, windstorm, flood, burglary and others. If an unfortunate incident was to occur, your chosen insurance company will make a payment so you can repair or rebuild your home, and also replace the contents.
There are a few types of home insurance policies but the two most commons policies are:
- Named perils policy – it covers losses that are due to only those perils listed in the policy. The perils typically covered include fire, windstorm, flood, burglary and other direct physical losses.
- All risks policy – it covers losses that are due to any peril except those specifically excluded in the policy. The perils typically excluded includes riot, war, act of terrorism, others.
Insurance companies generally cover the following:
- Damage to the interior and exterior of your house - In the event of damage due to any covered disaster, the insurer will compensate you so that your house can be repaired or completely rebuilt.
- Loss and damage to your personal belongings - The content of your home such as furniture, appliances, clothing and others are also covered.
- Personal liabilities for death disability or bodily injuries - If a visitor gets injured as a result of an accident in your home, your insurer will pay the medical bills.
- Cost of alternative accommodation while your home is being rebuilt or repaired - If you need to rent another apartment or live in a hotel while your damaged house is being rebuilt, good news; home insurance covers that too.
Since 2008, it is compulsory for a public or private organisation constructing a building above two storeys to take out a building insurance policy covering the structure and workers. This enforcement was ordered after there was concerns with the persistent incidents of collapsed buildings.