What Is Home Insurance?
Home insurance protects your house, as well as the value of the belongings it holds, in the event of theft, fire, injury or flooding, including liability insurance.
Liability is defined as damages caused by a person or your residence that impact other people. Consider what would happen if a fire that started in your house spread to your neighbour’s; if your dog were to destroy the electrical cables of the house across the street; or if your son’s best friend got hurt falling down your stairs!
Why Is It Useful?
Primarily, for peace of mind! You may believe that your home doesn’t contain particularly expensive items, but as a whole—consumer electronics, musical instruments, bicycles, cameras, jewelry, artwork—the value of your possessions can come to tens of thousands of dollars.
Imagine losing everything overnight in a house fire! Or worse: what if someone were accidentally injured because of an oversight on your part and you can’t afford to compensate them? It is in such cases that home insurance will come to the rescue.