The usefulness and function of home insurance explained in several points

Just like a car, housing must also be insured. Owners and especially tenants therefore have responsibility in relation to this cover. There are several types of contracts provided by insurance companies. Before you sign up, it is necessary to fully understand the principles of this mandatory protection of a home. Here is some important information about it.

The main benefits of home insurance

As his name suggests, home insurance has the primary purpose of covering residence against various disasters. It is a means of obtaining financial compensation in the event that a house or apartment suffers damage.

In this way, owners and tenants can receive compensation after burglary, water damage, fire, etc. However, everything depends on the type of contract the subscriber has chosen. Liability insurance is the most common, but multi-peril coverage is much more effective.

Details of the risks that can be covered

The conditions for home insurance can vary from person to person. But as a tenant, it is, for example, a statutory requirement to have a minimum guarantee for civil liability. This makes it possible to reimburse a third party for the damage caused by the subscribers.

On the other hand, a multi-risk contract will be much more advantageous. The coverage includes damage that you yourself have caused to others, but also damage to your own property. It is important to note that homeowners insurance is optional.

Multiple levels of contribution to pay

Of course, home insurance has a cost. The prices are variable and may change from one criterion to another. The premiums to be paid for a small area will actually be only a few hundred euros per year.

The bill can very quickly rise to several thousand euros for the most impressive homes. The insurance companies also calculate contributions according to the location of the property, the value of the inventory, the number of guarantees and the deductible.

How do you choose your home insurance?

First of all, it is essential to make an assessment of your movable property such as furniture, high-tech accessories, household appliances, etc. This will be helpful in determining what level of coverage would be ideal. Furthermore, depending on your needs, it is important to compare different insurance companies. There are online tools to make the task easier. Finally, also pay attention to the size of the contributions, but also the deductible.

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