More commonly known as Fire Insurance for residence, as well as Houseowner or householder insurance. Basically, this home insurance is to protect your physical building or content insider your house.
If your house in under mortgage with a bank, your bank will definitely need you to take up a home insurance, which they usually purchase on your behalf and charge to your housing loan without any effort from your side.
Home insurance taken by your bank is very likely to be a houseowner and householder insurance, which is difference from a basic fire insurance. We shall explore the differences between these insurance below.
Type of Home Insurance
Basic Fire Insurance – This is the most standard fire insurance which provide coverage against Fire, lightning and domestic explosion. You can either insure for your building or content.
Since it is the most basic form of fire insurance, you can decide if you wish to add-on coverage for specific perils such as flood, storm & tempest, aircraft damage, bursting of pipes, impact damage, Riot, strike and malicious damages etc. Without adding these special perils, your basic fire insurance will exclude cover and solely cover for accidental fire, lightning and domestic explosion.
Houseowner Insurance – This is a specially design fire insurance for private dwelling property. This covers for damages toward your physical building. Content is excluded as it will be under a Householder insurance.
Under this Houseowner insurance, it generally has included a various add-on perils such as flood, storm & tempest, bursting of pipes, theft breakin, aircraft damage, impact damage, earthquake and volcanic eruption etc so that provide a more complete coverage.
However, not everything is covered. RSMD (Riot, strike and malicious damage), Subsidence and Landslip may need to be add-on to houseowner insurance if you wish to include these cover.
Householder Insurance – This is specially design insurance to cover for the content inside your property against loss/damage from the covered perils. Content refers to household goods and your personal effects (such as clothes, watches, phones etc). Do take note that jewelry, gold, silver etc will have a limitation up to 1/3 of the total sum insured for content.
A householder insurance will also include theft where it is accompanied by actual forcible and violent breaking into the building.