Household insurance is a type of short term
that protects the owner of a home from loss or damage to buildings
on his/her property and the items within the home. This type of policy is especially
useful in the event of fires, vandalism or theft.
Household insurance usually refers to contents insurance which protects your belongings
within your home, while building insurance refers to cover for the structures themselves.
Buildings and contents insurance can be purchased together under one policy or if
need be separately.
Household insurance typically covers most of the homeowner’s personal belongings
and possessions against loss or damage. Household items like electrical goods, furniture,
electronics, clothing, jewelry and cash are covered to a certain limit. Items belonging
to you and your family tend to be covered by this type of policy, but items belonging
to visitors are usually not to be covered.
Accidental damage or loss to household items, like spilling coke on your computer,
is usually not covered by this type of insurance policy.
If something should happen and you need to claim, these policies normally provide
new for old cover. This means that the full cost of purchasing a new item to replace
the old one will be covered.
If items are taken outside of the home and are lost or damaged, household insurance
will not cover them. To provide cover for this an all risk insurance policy is needed.