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Which Type of Home Insurance Plan Should You Buy?

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If you'd like to purchase your first home insurance plan or update your current policy, it's vital to know the basics of the coverages. After all, you don't want to pay for a plan that doesn't provide the kind of protection you need. To get the best policy, consider understanding the different home insurance plans available today. Some standard home insurance plans are outlined below.

Building Insurance

This insurance plan is for the home's structure and other permanent fixtures like kitchen units, bathroom suites, and roofing. Some insurance providers even extend the policy to cover sheds, garages, and greenhouses in the compound. However, gates, fences, and walls are often not protected.

Although it's not mandatory to buy building insurance, most mortgage lenders recommend getting this plan or combining it with other policies. Therefore, if you decide to get a building insurance plan, ensure you take it out early – preferably when exchanging the contracts. This way, you will be covered if something happens before you move in.

Contents Insurance

Protecting the structure of your home may not be enough if you know you'll spend a lot to replace the items in your household. Getting a contents insurance policy will help reduce your financial burden. This plan protects items like clothing, furniture, television, documents, refrigerator, and portable equipment from damages or loss caused by flood, fire, theft, and other similar mishaps. 

The amount you'd need to pay to replace your belongings after the home gets flooded or burns to ashes could surprise you. So, even if you are a minimalist, the items in your house are probably worth a lot, and they need financial protection.

Public Liability Coverage

If one of your visitors or a third party gets injured within your compound, you will be obligated to compensate them. This usually occurs if the accident happens due to negligence. Maybe you have a faulty wiring system, or a particular part of your floor is damaged, and it causes trips and falls. The only way to ensure the compensation doesn't come out of your pocket is to get a public liability insurance policy.

As you buy any home insurance plan, it's vital to remember the incidences insurance companies don't cover. For instance, you will not get any compensation if you destroy your home or possessions willfully, lose property because of war, property damage caused by wear and tear, or losses incurred when the house is unoccupied for a certain period. Be sure to read each policy to know what's covered before you start paying the premiums.

Contact a company like Oliveira Insurance Agency for more information about home coverage.