Why home insurance? – 17.07.09


We have all heard of, or maybe even unluckily experienced, loss or damage caused by flooding, theft or fire. At this stage, there is an important product that one should actively consider: HOME INSURANCE

For most of us, the home is undoubtedly the largest single financial investment. Accordingly, priority should be given to ensure that adequate measures are taken to protect this costly asset.

Like with all other financial products, especially those designed to protect one’s assets, it is important, when choosing a Home Insurance policy that one makes the right and informed decision based mainly on what is covered and the particular requirements of the individual.

Most home insurance policies, including ours, provide for loss of or damage to the buildings and contents, BUT one needs to be aware of the exact extent of the cover provided.

Traditionally, buildings and contents were insured for fire, lightning, explosion and a number of perils such as theft, storm,tempest and flood. This type of policy is offered by us. We are also offering an extended cover, at a minimal additional premium, whereby even accidental damage to both buildings and contents would be included.

Home Insurance is not expensive.  It is based on the rebuilding cost rather than the purchase price of the property concerned – a MINOR fraction of the value that is being protected.

Typically, for a residence having a rebuilding value of €70,000, the annual buildings insurance would cost under € 0.30 per day, about half the cost of your average daily newspaper!

Contents insurance is also essential. Contents are normally all those items that one does not leave behind when moving house. The value of these cannot be underestimated… For example, just sit and work out how much it would cost to replace the items in your living room: a new television set, a new stereo, a carpet, curtains, the sofa, etc. There are also personal effects, furniture, valuables, jewellery and other household goods. If your belongings were damaged or stolen, why should you spend your savings on replacing these items when a properly arranged Home Insurance policy can cover such a situation?

Another important consideration is to ensure that your policy provides ‘new-for-old’ cover for Contents insurance: your three-year-old television is probably not worth much nowadays, but to buy a similarly specified new one could be costly.

Many insurance companies have a limit any one item on valuables and on audio and visual equipment, so if you have a state-of-the-art home cinema system, make sure your insurer will extend the cover accordingly. Similarly, one should carefully consider the value of any paintings, curios and other works of art.

Our policy offers accidental damage on audio and visual equipment as standard. Our home policy will cover your TV, stereo and PC and replace them if you break them.

In respect of all other contents, accidental damage cover may be purchased against an additional premium, if one wishes to insure on this basis.

In addition to Buildings and Contents, there is generally a section in a Home Insurance policy providing more extensive cover for specified items. These are usually personal belongings such as jewellery and watches that are used outside the house and even taken abroad. The cover for these items would be on an ‘all risks’ basis, and would therefore cover all losses except those which are specifically excluded in the policy.  At Bonnici Insurance, we pay particular attention to client confidentiality, it is a priority with us – an important factor when disclosing delicate information.

Finally, check the details of your policy. Our home insurance policy will automatically also cover presents and gifts. Others might not, so make sure you read the cover details carefully.

Our home insurance policy also provides some other additional covers, at no additional premium. These typically include:

 Full Theft cover
 Family Liability throughout Malta and Gozo
 Personal accident for all the family
 Legal Expenses cover
 Freezer Contents
 Sports Equipment

Taking out a Home Insurance policy has recently become easier. We offer an online application form and can provide you with a quotation, based on the relatively basic details that you can complete in just a few minutes.

As they say, better safe than sorry! If safe is not good enough, being properly insured is a good cushion. You work hard for what you have, and you know it makes sense to have the right Home Insurance policy. This will give you peace of mind, knowing that you have purchased a product designed to ensure that you have protection all around!

Ultimately, you can’t predict what will happen, BUT you can prepare for what may come!