Did you know that your residence and residence can be covered by insurance? Yes, homeowners insurance may not be as popular as life insurance and health insurance, but it actually has the same benefits. Especially considering that the house is an asset that is part of your achievements.
Homes are usually bought from years of hard work, even decades, so it’s only natural that you give it maximum protection. One form of attention is through insurance. Why is homeowners insurance important? We never know when disasters and unplanned things happen and befall the dwelling causing losses.
Homeowners Insurance and its Types
So what is homeowners insurance? Insurance that aims to provide maximum protection to your home from various possible risks that can cause financial losses. The risks referred to include fire, losses due to theft, and damage caused by natural disasters.
The special homeowners insurance is divided into 2 types, namely as described below.
1. Property All Risk or Industrial All Risk
The type of all risk property insurance or industrial risk is homeowners insurance that is unnamed perils. What does it mean? That is, the guarantee of protection is given as a whole against the risks that occur in the property and interests insured.
However, this type of insurance provides exceptions for certain conditions which include those that are not insured, namely war, nuclear, radioactivity, terrorism, loss or business interruption, pollution, intentional, dishonesty and the like. Property All Risk is given to non-industrial buildings such as homes, offices, hospitals, schools and so on. While special insurance for industrial buildings such as factories, the type is Industrial All Risk.
2. Standard Indonesian Fire Insurance Policy or PSAKI
Judging from the name alone, it can be guessed that PSAKI insurance is a protection provided as a form of service from a fire insurance policy. So this insurance provides protection for homes or other types of buildings from losses due to risks caused by fire and the like. The risks included in this PSAKI are property loss caused by fire, explosion, lightning, plane crash and smoke.
How Does homeowners insurance Work?
It’s natural that you want to know in advance how the system and how the homeowners insurance works before deciding to become a customer. Simply put, the way the insurance works is that the customer’s insured value will be calculated based on the estimated amount of funds needed to build a house or other building at this time with its area.
So for example, you have a house with an area of 200 square meters with an insurance coverage of Rp. 600 million. So the calculation is that if at this time to build each square meter, a fund of Rp. 3 million then the total fund needed for 200 square meters is Rp. 600 million.
In addition to the physical value of the building, you also include the assets in the house into insurance. The calculation is just added to the insurance value of the physical building of the house. For example, the total value of the assets in the house is Rp. 150 million then the total insurance value is Rp. 750 million.
How to Choose a Good homeowners insurance?
As with other types of insurance, such as health insurance and life insurance, you must be careful when choosing insurance for your home. Why? So that the protection provided by the insurance is really maximum and in accordance with its purpose. Well, here are some tips for choosing a special homeowners insurance.
1. Choose a Trusted Insurance Company
homeowners insurance is offered by many insurance companies, so choose a trusted one. Pay attention to how the reputation of the insurance company so far, especially in paying claims to customers. That way you will feel calmer because your home and assets have received the right protection.
2. Study the Policy Carefully
Not much different from when you join other insurance products, which is to learn the policy first. Read carefully and understand all the articles written in the policy so that later there will be no misunderstandings that cause problems. If there are articles in the policy that you don’t understand, ask the insurance directly.
3. Choose the type of protection as needed
Are you going to take insurance that only protects the physical building of the house or is it all with the assets in it? It all comes back to the needs and financial capabilities of each. So you should first consider which home-specific insurance product you need.
Well, that’s an explanation of homeowners insurance that you might need to provide maximum protection for your home. Protect your home from possible unexpected risks with insurance.