The world is an unpredictable place and even the most careful person can happen upon unforeseen events that can turn their existence upside down. That is why it is increasingly important for homeowners to purchase home insurance and for anyone with a family to look after to consider purchasing life insurance.
Taking out these two policies will provide peace of mind and more importantly, will make things so much easier to deal with in case of an unexpected, unfortunate incident.
Home insurance
Home insurance policies — which can also be known as hazard insurance or homeowners insurance — are property insurance that cover private residences. These policies typically cover the physical structure of the house as well as personal belongings inside the house, and liability. Since all of this is covered under one policy, the homeowner pays just a single premium. Home insurance and life insurance policies have some similar history.
Home insurance is a relatively new type of insurance in the United States, where the first official policy was available in 1950 — shortly after World War II and the subsequent boom in middle class home ownership. Home insurance was available in Great Britain before that year, and was available in other forms in parts of the United States, but it was not known as home insurance and did not do quite the same thing.
Life insurance
While home and life insurance both give peace of mind, life insurance has been providing that relief for far longer, as it has been available in varying forms for centuries. Life insurance is currently available in two forms: term — or temporary — insurance, and permanent insurance. There are also policies available that cover just accidental death and do not cover such things as suicide or health problems, and are typically sold for a much lower premium because of this fact.
Why choose insurance?
Any homeowner who does not get home insurance is playing a very risky game — one where the consequence for losing can be the loss of hundreds of thousands of dollars. Anyone who owns a home should have a home insurance policy. Life insurance is a bit more tricky, but it still makes sense to have some sort of policy so that in case of death, loved ones are taken care of and the cost of a funeral is covered.
Both of these policies provide something priceless: the ability to go to sleep at night with less worries and more security.
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