Property is typically the most valuable asset many people will own in their lifetime and the true worth of a home is not only measured in financial terms, but also in the sense that they represent our own private havens and contain many items of great personal value.  Home insurance can provide you with a way to protect your home and its contents against a number of potential threats, from fire and flood through to criminal damage and theft, and is an essential financial product for any homeowner.

Types of risks

Wherever you live there will be a number of different threats which could put your home and contents at risk from damage or loss, and you can help to protect yourself financially against these threats by making sure that your home insurance policyprovides you with good cover. The importance of home insurance can be seen in the fact that most mortgage lenders require you to have home insurance as part of your agreement, so that if anything should happen the property is insured and covered against damage and loss. Risks which could affect your home include:

• Fire – this is one of the major causes of property damage, as there are many fire hazards in the average home including kitchen appliances, barbeques, temporary party decorations (including Christmas lights), flammable liquids (paints, adhesives and solvents) and also electrical wiring. Make sure you are covered against fire damage by your policy, and also reduce the risks of fires breaking out by fitting and maintaining smoke detectors and fire extinguishing equipment on each floor of your home and storing hazardous liquids safely in a dry, secure area away from light and heat sources (such as a shed or garage).
• Flooding – you will need to check your local area to see if there is a risk of flooding during particular times of the year such as high tides and spring melts, especially if you live close to a natural water source such as the ocean, a lake or a river. Not all insurers will include flood coverage in their policies so if your home is in a high risk area you will need to make sure your get this type of coverage included in your policy.
• Subsidence – some insurance companies will not offer you a policy if your home already has subsidence issues, as the costs to repair this tricky engineering problem can be very high and in some extreme cases you may even need to carry out a complete rebuild. To help prevent subsidence make sure you plant trees and shrubs well away from your property and any drainage systems, and carry out regular checks for leaking or blocked drains, ground water and blocked/damage pipes and gutters.
• Storm damage – severe weather can cause a lot of damage to homes, and your home insurance policy can help to cover you for damage caused by lightening, gales, heavy rainstorms and so on. If you have a lot of trees on your property check you are covered in the event that any of these blow over and damage your home or your neighbor’s property, and also make sure you check these trees regularly to ensure they are healthy and well maintained (trimming back branches and lopping tops when they get too tall) to help avoid any problems like this in the first place.
• Criminal damage – vandals can cause a lot of damage to a property and any associated outbuildings, and home insurance policies can provide you with financial cover against this type of damage, and you should also make sure your property is secure with a solid fence and locked gate to restrict access to the rear to deter opportunistic vandals.
• Theft – this is one of the major threats to homeowners, and it has been estimated that as many as one in three homes will get burgled at some point, and yet still as many as 25% of all homeowners do not take out a home insurance policy that will cover them against this type of loss. Home insurance can help to you cover any damage caused by thieves such as broken windows and doorways, and can also provide you with contents cover to help you replace or repair any goods that have been stolen or damaged by intruders.
• Accidents – many people do not realize that if an accident occurs on their property they will be legally liable, and this can result in some serious financial costs. Home insurance policies can provide you with full personal liability cover, so that if you, a member of your family or any visitors to your property are involved in an accident or injured, you as the homeowner would be covered for any legal costs.