A home is where people share good times and bad times with their families and loved ones. The home is not only that, it can also be viewed as an investment. In fact, most people consider it to be the biggest investment that will come from them.

Since a home is also an investment, then insuring it is a move in the right direction. If at all a bad event such as fire outbreak, theft or other forms of damage is to occur on an insured home, the insurance company will provide compensation to the home owner.

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Home insurance provides funds to repair or restore a house, property or condominium which have experienced loss or a degree of spoilage. Home insurance also extends to personal belongings which was stolen or damaged.

In addition, the wonders of home insurance also extends to ruins or injuries which happens during the visit of other people to your property. Home insurance can save you from heavy financial obligations originating from accidentally causing ruin to your neighbour’s dwelling place.

To signify how important home insurance is, many of the existing financial institutions demand for home insurance, for without it, they will not provide mortgage.


This aspect of home insurance refers to tenants who rent their dwelling place from another person. In the case of loss or damage, this insurance offers protection for the tenant. Also, if a property belonging to the tenant is taken from their vehicle, the tenant insurance provides adequate coverage as well. Tenant insurance provides a payment solution to the damage brought about by the tenant on the building as well as injury to visitors.


Before choosing a home insurance, proper attention ought to be given to the quotes received. These quotes are:

Actual cash value and

Replacement value

The monetary payment to be obtained from the insurance company relies on the above quotes. Actual cash value pays less during claims compared to replacement value because replacement value is more expensive.

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This simply explains what the insured item costs at it very new stage without the influence of depreciation. With this method, it is easy to calculate what to receive from an insurer once a claim is made. Depreciation can only be calculated according to the choice of the insurance firm as well as the insured item.


This has to do with what it costs to replace an item when loss is experienced. For the purpose of calculating what it will cost an insurance firm in the event of a claim, this is another avenue to achieve that. Premiums directly linked to replacement value are greater in price compared to premiums linked to actual value.


Property insurance is instrumental in the event of damage to businesses, homes and cars. It can provide financial solution even when you cause injury or damage to someone else or their property. Property insurance is important to anyone who plans to own a home in future and even as a tenant, it can save you from a lot of problems.

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