Insurance is a policy that you pay in installments that protects you from financial loss, it’s a form of risk management.
There are two types of house insurance; building insurance and contents insurance.
- Building insurance is usually mandatory if you have a mortgage, as the mortgage company like to know that if you’re house burns down you have financial means to rebuild the house. Building insurance protects permanent fixtures in your home such as bathroom, kitchen fittings and your roof.
- Content insurance is for the belongings inside your home. Content insurance protects your ‘things’ from theft, fire damage or water damage.
There are many other types of household insurance, such as tenant and landlord insurance.