Home repairs can be expensive and when you have to pay for them out of your own pocket, it can leave you in a bad financial situation. But could insurance help?
Most people already have a home insurance policy that covers them against damage from natural disasters like fires or flooding, or damage from vandalism and theft. However, that doesn’t usually cover you for repairs and you can get separate coverage for that. But home repair insurance coverage isn’t the right option for everybody and sometimes, it’s not worth paying for it. This article will tell you everything you need to know about home repair insurance and whether you need it.
What Does Your Standard Home Insurance Cover?
What most standard home insurance policies cover is accidental damage to your home. This could be things like cracks in the wall, broken windows, or floods caused by burst pipes. In short, you are covered against unexpected events that cause damage. However, there are often disputes about what is and isn’t covered. Even if you read the fine print, it may not be fully clear, and you could find yourself in a situation where the insurance company refuses to pay out. If you are sure that you should be covered, contact insurance claim attorneys and make a case. But before you do that, you should consider whether you need more extensive insurance to cover you against the issue.
What Does Home Repair Insurance Cover?
Home repair insurance, sometimes called home maintenance cover, is different from standard homeowners insurance. It covers you against general wear and tear around the home and with your appliances. So if your fridge stops working, a home repair insurance policy could pay for you to have it repaired. However, it won’t include coverage for damages from natural disasters or theft, so take out separate insurance for that if you need it. In short, this is an add-on that covers common problems in the home, rather than protecting against damage caused by events that are unusual and unforeseen.
Do You Need the Extra Coverage?
This is a tough question to answer, and it depends on your financial situation. If you have the money available to pay for repairs, you probably don’t need extra insurance. But if you can’t afford it from your regular income and savings, then a home repair insurance policy could be a good option. You simply want to ensure that you won’t go into debt because of the expense.
In short, you need to decide whether the monthly insurance payment is manageable or not, or whether you would rather put the money into savings instead. If you are only making small repairs yourself, the cost is probably lower than the cost of paying insurance premiums every month. However, home repair insurance really comes into its own when you have expensive problems, like a broken boiler or air conditioning unit.
Overall, home repair insurance is worth having. Even though you might feel that it’s a waste of money when you aren’t claiming, it can help you avoid some serious financial problems when you have major issues with your home.