There are a variety of different types of home insurance that you can cover yourself for. The more of your home and potential risks that you insure against, the higher your premiums will be. It is important to cover yourself in these different ways, as the cost of not insuring your house is far greater than what you might save by not covering all eventualities.
Different insurance companies will cover different threats. The more they cover on your behalf, the more expensive the insurance premium will be. At the very least, cover the likely dangers your home is at risk of, such as flooding or earthquake cover, if you live in an area susceptible to these risks.
The amount that you cover your home for should be more than the current value of the home. It should include the cost to rebuild in the event that the home is destroyed. Most insurers no longer insure a home for more than the market value, but rather at market value plus 25% to rebuild.
Home insurance should include a liability insurance policy, such as general liability. This policy protects the homeowner from any claims of damages and personal injury by third parties who may suffer such on your property.
A home insurance policy only covers the structure of the house and any fixtures, such as garages and geysers, so it is absolutely mandatory that you insure the valuables inside your home. This covers all non-fixed possessions for the same perils as the home insurance as well as for theft.
If you own a small business (and run it from your home, for example) it is also important to think of other risks you may face. Legal insurance might be necessary, and you should insure business assets separately from your home contents insurance so as to make a clear distinction between personal and business valuables, as insurance companies probably won’t payout for your business’ assets under home contents cover.