What Does Home Insurance Cover? Essential Protections to Know

Uzone.id – Owning a home is the dream of many people. However, homes can be damaged due to natural disasters, fires, and unexpected events. To overcome this, home insurance can be the right solution. 

With this, homeowners can be protected from various types of risks that can cause financial or material losses. So, what damage or losses can be covered by home insurance?

Two types of protection are usually offered by home insurance companies, namely primary protection and additional protection.

Primary Protection

As reported by the Financial Services Authority (OJK), by the Indonesian Standard Insurance Policy, basic coverage or primary protection in home insurance includes damage due to fire, lightning, explosions, falling aircraft, and smoke abbreviated as FLEXAS.

1. Fire

Fire insurance is one of the protections that covers losses due to damage due to fire, both from inside and outside the house. The objects covered are not only the building of the house but also property that is also damaged by fire.

Damage due to fire is usually the main or basic guarantee obtained by insurance owners because the quantity of cases is quite large. Because it is often encountered, insurance companies usually provide coverage for fires caused by one’s own mistakes or household assistants, robbers, neighbors, and so on.

2. Lightning

This type of insurance offers protection against property or building structures damaged by lightning strikes. Not only that, this insurance also covers losses when lightning strikes electrical household equipment to electrical installations that are burned or damaged.

3. Explosion

Damage or loss to property caused by explosions originating from gas, chemicals, or other objects is also covered by home insurance companies. However, there are times when cases of explosions caused by nuclear power are excluded by the insurance provider.

4. Aircraft Crash

Home insurance companies also provide protection offers for damage to home objects or property due to falls or physical impacts from aircraft, including helicopters.

5. Smoke

In addition, home insurance companies also cover losses due to smoke that causes air poisoning or permanent damage to buildings or property. This case includes cases of fires that occur around the house.

Additional Protection

In addition to the five main protections covered by the insurance providers above, insurance companies also provide additional guarantees or protection. However, this additional protection usually has additional costs. The additional protections include:

1. Natural Disasters

This insurance offers protection against damage caused by nature such as floods, hail, storms, hurricanes, earthquakes, volcanic eruptions, tsunamis, and other natural disasters can also be covered by insurance companies.

2. Malicious Acts

Damage or loss caused by malicious acts such as theft, terrorism, riots, sabotage, and vandalism are mostly also covered by insurance providers. However, this protection often requires additional premiums or special policies.

Tips for Choosing Insurance

1. Do in-depth research
2. Choose an insurance product according to your needs

Before determining an insurance product, be sure to first check the location and condition of the property that we will insure, such as looking at construction materials, types and plumbing systems, and electrical installations. In addition, also check the potential risk of natural disasters or flooding around the property.

3. Understand the insurance policy.

You must understand the insurance policy because each company has different provisions regarding what risks can be covered. So, you must know the scope and value of the guarantee of the insurance product.

4. Understand how to submit a claim

It is very important to understand the procedures and provisions for submitting a claim in the insurance product to avoid the problem of failed claims in the insurance process.

5. Make sure to buy insurance products from an insurance company that is licensed.

There are many other types of protection guarantees offered by insurance providers. Because each company has different insurance coverage some risks may not be covered. 

By having home insurance, you can protect valuable assets or property and your family from various unexpected risks in the future. In addition, the value of the house or property can also be maintained, especially since the house is a high-value investment set. (Aisyah)