Are you confused when it comes to home insurance? Fire insurance, water insurance, home insurance… these terms all sound like they are talking about ensuring the safety of a house, but what are the differences between them? Are these three really as simple as their names seem? In fact, their respective coverages and functions are quite different. Today’s article is to help you clarify these concepts and choose the home insurance that best suits your needs.
What exactly is “fire insurance”?
Many people think that fire insurance is insurance that protects fire losses. In fact, this understanding is only partially correct. Fire insurance, the most accurate name is “building structural insurance”, actually mainly protects the structural damage of the building itself. This includes the floors, ceilings, doors and windows of the house, and even those parts that were already decorated when the house was purchased. In other words, fire insurance does not protect your home contents. For example, if the structure of your home is damaged due to disasters such as fire, earthquake, flooding, or typhoon, fire insurance will help you pay for the cost of repair or reconstruction. However, if the furniture, appliances, televisions, computers and other belongings in your home are also damaged, they are not covered by fire insurance.
What is “water insurance”? Something to do with the sea?
When everyone mentions “water insurance”, they always think of flood-related insurance. However, in fact, the term “water insurance” does not exactly correspond to what we call “flood” every day. In the field of insurance, the full name of “marine insurance” is “marine insurance”. Its main function is to protect the risks of goods during maritime transportation, and has nothing to do with the problems we need to face at home. Therefore, water insurance is not really suitable for protecting your home from flood damage.
What is the difference between “home insurance” and the other two?
So, how is home insurance different? In fact, home insurance coverage is more comprehensive than fire and water insurance. It not only covers damage to the building structure, but also covers damage to the property inside the house. For example, if your furniture, electrical appliances, jewelry, clothing, paintings, paintings, luxury watches and other items in your home are lost in accidents such as fire, flooding or theft, home insurance can compensate for the loss.
How to choose between fire insurance, water insurance and home insurance?
Choosing insurance is actually closely related to our life needs. If your focus is on protecting the structure of your home from disaster damage, fire insurance is a must. However, if you are worried about burst pipes, rainwater leakage, or the damage that flooding may cause to your home, water insurance or rainwater leakage coverage may be worth considering. The most comprehensive protection is undoubtedly home insurance, which covers damage to the building structure and home contents, and is the most suitable choice for most people.
Of course, the needs of each family are different. Some may only need structural protection for their building, while others may need additional protection for their home contents. Therefore, when choosing insurance, you can choose the home insurance plan that best suits you based on your needs and the specific circumstances of your family. Before buying insurance, you might as well ask yourself whether there are some insurance items that you don’t need very much? Which coverages might be more important to your family?