What is Home Insurance and How Does it Work?

Home insurance is a type of insurance policy that offers financial coverage to homeowners against losses or damages to their property and belongings. It acts as a safety net in case of events such as natural calamities, theft, fire, or other unforeseen incidents. Therefore, it is recommended that you buy home insurance when you’re investing in property.

Here’s how it typically works:

1. Policy Purchase: You select a home insurance policy based on your needs, property value, and the coverage options offered.
2. Premium Payment: You pay a periodic home insurance premium (monthly, quarterly, or annually) to the insurance provider.
3. Filing a Claim: In the event of damage or loss, you file a claim with your insurance provider.
4. Claim Settlement: After verifying the claim, the insurer compensates you based on the terms and conditions of the policy.