Home Insurance: Safe and Peaceful Living Solutions

No one could predict a disaster! To avoid devastating loss, we need proper measurements to protect our valuable assets, like our house.

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Lifestyle & Tips

A house is one of the greatest assets we will have in life, not only as a place to rest, shelter, and do activities, but also as a long-term investment. Hence, we need special protection that can guarantee our homes from unforeseeable risks.

No one could predict a disaster that can occur and the cost it will take. For many people losing their home is equal to losing the biggest investment in life, therefore we need to have home insurance. Having home insurance means we can relieve any financial risks and losses to the insurance provider. 

Property insurance is an insurance product that provides protection against losses due to fire, theft, or damage caused by natural disasters. By having property insurance, policyholders will certainly be calmer when they need to travel for a long time. Insurance not only protects the risk of your residence or business but also jewelry and valuables, household appliances and furniture, electronic devices, third party legal liability, personal accident protection due to incidents of building damage and other additional benefits.

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Why it is important to have property insurance

  1. Loss compensation
    Property or houses can certainly be affected by disasters such as fire, earthquake, or theft. To anticipate losses – especially financially – we must prepare protection in case bad things happen to our residence.
  2. Assets protection
    In a house, not only the building that is valuable, but also other assets inside such as furniture, important documents, electronic goods, to the safety of life.
  3. Maintain property values
    It is no secret that property prices can go up and down according to the condition of the property itself and the surrounding environment. By having insurance, we can prevent the decline in investment value when a disaster occurs, because the insurance company will compensate for the losses experienced.
  4. Provide a sense of security and comfort
    Living a safe, secure, and comfortable life is everyone’s dream. By having home insurance that can minimize the risk of loss, of course, our lives will feel safer and calmer.
  5. Become financially more stable
    Indeed, when using insurance, we have to pay premiums regularly, but by having property insurance, our financial condition can be more stable. For example, if there is a fire, we can incur huge losses. However, if you have insurance for the building, we can have a replacement home with insurance coverage from the insurance company.

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Types of Home Insurance

After knowing the uses of home insurance, it’s time to choose the right type of insurance for our home. Home insurance is generally divided into two, namely the Indonesian Fire Standard Insurance Policy and All Risk Insurance.

  1. Indonesian Fire Standard Insurance Policy (PSAKI)

According to the Indonesian General Insurance Association (AAUI), Indonesian Fire Insurance covers loss or damage to the insured property directly as a result; Fire, Lightning, Explosion, and Smoke that are entirely accidental. 

Specifically, PSAKI guarantees damage from several types of fires, including those caused by accident, carelessness, fire spreads, to short circuits. PSAKI’s policy also includes damage caused by water or other tools used to contain or extinguish fires.

The policy will not cover if a fire occurs due to intent and theft or loss. With the use of this policy, we can make claims in case of fire due to elements that often cause fires.

  1. All Risk Property Insurance (PAR)

Broadly speaking, PAR also covers damage caused by fire, lightning, explosion, plane crash, and smoke, as in the Indonesian fire insurance standard, or PSAKI. The difference is, PAR provides more coverage for other damages such as natural disasters (floods, storms, typhoons, earthquakes, volcanic eruptions, and tsunamis), vehicles (house hit by a car), riots, strikes, evil deeds, and terrorism. 

The coverage of PAR insurance can vary depending on the insurance company and the premiums used. Therefore, we need to be careful when looking for the right insurance product in the pocket and in the heart.

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As with buying a house, we need to do some research before determining the right insurance for our home. The number of products with various services certainly makes it increasingly difficult for us as consumers to choose. There is home insurance that offers several different protections and makes us want to take it all on. There are also those who offer insurance at affordable prices and make us complacent without considering the contents of the clause.

Hence, it is important to recognize the characteristics of our home and our financial condition before applying for property insurance and take our time to do research and comparison.