When you buy a home, you will have some insurance. Fire insurance, household property insurance, earthquake insurance, etc. This time, let’s introduce the insurance for the house itself.
Types of insurance related to housing
When you buy a house, most people buy “fire insurance”. This “fire insurance” is the basis for housing insurance. “Earthquake insurance” and “household property insurance” are basically fire insurance contracts, and it is common to take out ancillary contracts and separate contracts, and the coverage is also based on fire insurance. By covering the lack of compensation with the three insurances, you will get a comprehensive sense of security in your home. The main roles of the three insurances are as follows.
- Fire insurance Prepare for damage to buildings
- Household property insurance Prepare for damage to daily necessities that cannot be covered by fire insurance (the building part)
- Earthquake insurance Prepare for damage to buildings and household goods caused by an earthquake
However, the compensation amount is basically the compensation amount of fire insurance, and it is supposed to be set in the range of 30 to 50%. Therefore, if you do not have fire insurance, you cannot take out earthquake insurance. There are differences between fire insurance and household property insurance depending on the non-life insurance company, but recently, insurance that allows you to comprehensively select the coverage as “residential insurance” has come out. However, earthquake insurance is the same regardless of which non-life insurance company you subscribe to. This is because earthquake insurance is made possible by the government’s reinsurance of huge earthquake damage that exceeds a certain amount of earthquake insurance liability borne by private insurance companies.
Characteristics of each insurance
Fire insurance covers various damages other than fire. In general, there are five types of compensation:
1. Fire, lightning strike, burst, explosion
2. Wind disaster, leopard disaster, snow disaster
3. Flood disaster
4. Theft, water leak
5. Damage etc.
Of these, 1 is a basic contract for fire insurance, and there is no big difference in the coverage of any insurance. And you will decide whether to provide compensation in consideration of the location conditions and structure of your own house. Regarding 4 and 5, comprehensive fire insurance (also called free design type, risk subdivision type, etc.) is a compensation variation, but there are also those that divide this part as “household property insurance”.
It also compensates for damages such as theft, water leaks, and accidental damage, not disasters.
Earthquake insurance requires a separate contract from fire insurance and household property insurance. The insurance rate is the same regardless of which insurance company you subscribe to, but the rate varies depending on the degree of earthquake risk and the structure of the area and building. And fire damage caused by the tsunami caused by an earthquake. In the case of fire insurance only.
How Much Does a Home Insurance Cost?
I’m worried about the cost of insurance for housing, but it may be difficult to say “generally this much”. Area, building structure, scale, detached house or condominium, family structure, age.And how to select the compensation range.
It is important to make quotations from multiple non-life insurance companies. And compare them by changing the options settings of the compensation contents. In addition, the required cost will vary depending on the contract method such as long-term contract discount, annual payment/lump sum payment, and insurance premium payment method.
