Homeowners insurance is also referred to as
household insurance, but unlike household insurance is often used to imply
both contents insurance and buildings insurance.
When the term ‘homeowners insurance’ is used to imply contents insurance it refers
to cover for personal belongings and items within the home in cases of loss or damage.
When it is used to imply buildings insurance it refers to cover for the structures
on the policy holder’s property and not the items within the structures. Often homeowners
insurance refers to cover that includes both of these types of insurance.
Before buying a home insurance policy, consider doing the following:
- Calculate how much your possessions are worth
- Shop around for
insurance quotes
- Find out how much the premium is on the policies you find
- Ask about the excess (the amount you will need to cover yourself before the insurance
policy kicks in)
- Ask if there are any discounts available
- Check if there is a no claims bonus
- Check if there are any conditions or restrictions like not being covered if the
home is left unoccupied for a certain length of time
- Make sure you understand the policy and what it covers