Home insurance protects your house from big losses. If your house catches fire, gets robbed, or is damaged by natural disasters like floods or earthquakes, home insurance helps you recover the cost. You pay a small amount every month or year. If something bad happens, the insurance company gives you money to fix or rebuild your home.
There are two types of home insurance. The first is building insurance. It covers the structure of the house—walls, roof, windows, etc. The second is content insurance. It covers the things inside the house, like furniture, electronics, and clothes. You can choose either one or both depending on your needs.
Home insurance also gives protection from theft, vandalism, or if someone gets injured on your property. It gives you peace of mind, especially during bad weather or when you are away from home. Many people buy it when they take a home loan, as banks often ask for it.
If you own a home, this insurance is very useful. If you rent a house, you can still get content insurance to protect your belongings.
