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Home Insurance: What Is It, and How Does It Work?

Home insurance is insurance that provides protection against losses due to fire, theft, or damage caused by natural disasters.

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Most people will think that the house is an asset and a very big achievement in their life, this is certainly very reasonable, considering that the house is obtained with a very long process and hard work over a long period of time.

By looking at the facts above, it is only natural that you will always want all the best care and protection for your home. This will prevent you from experiencing a number of risks of loss that can happen to your house at any time, because basically none of you can predict when a disaster will come. For that, you need protection from the start, namely by using home insurance.

Home Insurance and Benefits

Home Insurance Benefits

Although not as famous as life insurance and health insurance, home insurance is also well known and widely used by Indonesians. This is due to the high level of public awareness of the various risks of loss and also natural disasters that can occur at any time.

Home insurance is insurance that provides protection against losses due to fire, theft, or damage caused by natural disasters.

By having home insurance, all forms of risk of loss arising from the various things mentioned above will be borne by the insurance company. That way, you can calm down and feel comfortable because your assets have maximum protection that will prevent you from worrying and even fearing these things.

Imagine, what happens if at any time a fire disaster strikes your house and consumes all the buildings and assets in it at once? This incident will certainly be very scary, right? Given that the house is an asset of high value and has historical value for you and your family, you will be emotionally devastated by this incident. Then what about the fix?

If you don't have insurance, all losses arising from this incident will be your own responsibility. It's easy if you have sufficient funds, but what if you don't have the funds for it? So you can be sure that you and your family will fall down and experience financial difficulties, disruption in handling work that brings regular income every month, it is difficult to return to your original position or condition.

Never underestimate the problem of home insurance, the protection is very large and has very important benefits for you and your family. Not only major damage, but various other minor repairs due to natural disasters will also be covered by him.

Types of Home Insurance

Guarantee Your Home Against Various Risks.

When you talk about protection, it's only natural that you will always want the best protection you can get. Of course, you do this with the aim of minimizing the risk of loss that may arise at any time in the future. Based on the services provided, home insurance can be divided into two types, namely:

1. Property All Risk / Industrial All Risk

This is a type of fire insurance, which is unnamed perils, which provides coverage for all risks that occur to the insured property and / or interests, except for the risks listed in the exceptions, namely: war, terrorism, nuclear and radioactive; delay, loss of market share or business interruption; deliberate, employee dishonesty: Mechanical and boiler breakdowns; wear, corrosion, the nature of the item itself; pollution or contamination.

The guarantees provided by the Property All Risks (PAR) insurance service include:

  1. Guarantee for riots, strikes and evil deeds.
  2. Cover for hurricanes, storms, floods and water damage.
  3. Guarantee for earthquakes, volcanic eruptions and tsunamis.
  4. Guarantee for landslides and ground movement.

Basically, All Risk Property insurance (PAR) only applies to non-industrial buildings, such as: offices, residences, hospitals, schools and various other property buildings. Meanwhile, industrial buildings, such as factories, warehouses, malls and shops, will use Industrial All Risk (IAR) type insurance.

2. Standard Fire Insurance Policy

This insurance is a standard policy issued by the General Insurance Association in Indonesia (AAUI) as a form of fire insurance service. The benefit of this property insurance product is that it provides protection for the insured assets and / or interests which are directly caused by: fire, lightning, explosion, fall of an airplane (aircraft), and smoke.

However, in addition to the main benefits listed above, fire insurance can be extended with coverage for other risks that are not covered, including:

Riots, strikes, and malicious damage.
Floods, hurricanes, storms and water damage.
Business interruption (loss of profit).

How Home Insurance Works

How Home Insurance Works Assessing Your Home Assets.

Before deciding to buy a product, of course you always want to know about the pattern or how the product works. Thus, you will not be disappointed or even feel disadvantaged as a result of the purchase made. This will also apply to home insurance, you certainly want to know clearly the benefits and ways of working that are applied by the insurance company in the products you are going to buy.

However, in addition to the physical building of the house, you can also insure the assets contained in the house.

How to Choose Home Insurance

Today there are many insurance companies that provide home insurance services, so you have many options. However, considering the importance of the protection that you will get from a home insurance service, it is only natural that you consider this very carefully. The following are ways to choose home insurance that you can consider:

1. Choose the Best Insurance Company

The main thing that you must consider is choosing the best insurance company, you can do this by looking for a variety of adequate information from the internet or by going directly to an insurance company that is at your standard.

Find an insurance company that has credibility and a good reputation, this will guarantee the service you will get from them. Use only trusted insurance companies that can meet your needs for qualified insurance services.

2. Use the Right Policy

Make sure you know well, the entire insurance policy that you will buy and use. This will prevent you from the risk of loss and various problems that may occur due to misinterpretation of the policy from the start. If you find that you have problems, learning the contents of the policy, then it's a good idea to ask an expert or an insurance broker.

3. Select Adequate Coverage

When buying an insurance policy, make sure the premium amount you pay has met adequate coverage, so you can avoid the risk of getting a low coverage value. Calculate and carefully consider each component of the coverage that you will get, so that you can get the maximum benefit of the insurance purchase that you use.

Insuring Your Home Right Now

As an asset of high value, it is only natural that your house is equipped with insurance protection. Don't be reluctant to pay a premium in the home insurance that you buy, this will be directly proportional to the protection benefits you will get.
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