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A good home insurance policy will ease the burden and financial constraints should the worst happen, Anthony Cauchi, general manager, Elmo Insurance, says.

Have the amount of homes insured increased in the past years?

The property market has boomed in the last year and with the sale of property increasing, the need for home insurance is also on the rise. A home is the most valuable asset you have. No matter what household you live in, there are always possessions that need to be protected. The right home insurance can give you peace of mind knowing that, should the worst happen, you can cover the cost of repairing or replacing the things that you value.

Do most clients buy home insurance because of legal and bank regulations or because they acknowledge the added value that this brings?
Surely the majority of customers buy home insurance because of the requirements imposed by banks to cover the property with a home insurance. Unless a policy is in force, the banks would not grant any facility. Normally, a bank requires customers to cover the buildings only and it would be up to the customer whether to insure the contents or not. We always guide
our customers to buy full protection and therefore we suggest that the contents are insured as well.

Beyond legal and bank regulations, how important is it for homeowners to insure their home?
Only the minority of customers opt for home insurance when there is no obligation to do so. If you had to think of the serious consequences which would follow after an accident, fire or theft, surely a home insurance policy will ease the burden and financial constraints. As a homeowner, you can also be held liable for damages or injuries to third parties and compensations in this respect are very high.

What risks do you cover?
The cover provided by our home policy is very comprehensive and includes damages arising from fire, lightning, explosion, smoke, earthquake, storm, tempest, flood, escape of water, theft or attempted theft.

What fixtures and fittings can be insured?
The home policy covers buildings and contents. The buildings should reflect the actual rebuilding cost of your property together with fixtures and fittings such as apertures, doors, bathrooms, solar water heaters, photovoltaic panels, alarm systems, fitted air-conditioning units and fitted kitchens. The contents should reflect the actual replacement value of all movable property within your home including furniture, household goods and personal belongings which belong to you or for which you are legally responsible. You may be asked to specify certain high value items such as jewellery, silverware, works of art, curios and collections.

Can homeowners also insure any possession that is kept in the home?
Personal possessions may be insured inside as well as outside the property.

On what criteria is the insurance amount calculated?
The premium is calculated as a percentage of the sum assured. Different percentage rates apply for different sections.