Typically, there are two types of insurance coverage that is offered. Home contents insurance which is optional to purchase by the home owner, and building insurance, which is pretty much mandatory to get as it covers the building, as well as fixtures and fittings. Investing in both types may benefit you if the worst should happen, for example in the case of a fire.
Contents insurance coverage
This typically covers property in your that you own, such as personal belongings, furniture, television etc. Basically it is your belongings that you would take with you if you were to move into another home.
Generally, you are covered for theft, flood damage, fire, and damage such as vandalism. In some cases, depending on your insurance company – you may also be covered for accidental insurance such as accidentally breaking electronics or other belongings in your home.
Building insurance coverage
This typically covers the exterior structure of your home in the event that it gets damaged. Your policy typically covers the cost to repair or rebuild damage to your home. This type of home insurance will also cover and protect anything in your home that is not removable, this means your kitchen, bathroom and basement are covered in the insurance policy.
Saving on your home insurance
Paying a higher deductible than the standard amount required by the insurer may allow you to make some savings in your home insurance. A deductible is the amount of money you have to pay to the insurance company before the insurance company’s own coverage plan begins.
While the insurance company requires a minimum deductible, there really is no maximum amount that you can offer to pay. The only disadvantage of paying a high deductible is to find the lump sum of money to pay the insurance company when if a claim is ever made.