A safe place to live, relax and build a family is invaluable, but there are real costs tied to repairing and replacing it, if needed. The high price of addressing the impact caused by a natural disaster, burglary or other unwanted incident can deeply cut into your savings or even cause you to go into significant debt.
Home insurance can help you address the costs that come along with damage to your house. That means avoiding financial stress and focusing on rebuilding, repairing and getting your life back to normal.
Why home insurance is a safety net for your savings
"Home insurance makes it less likely that you will need to dip into your savings."
Home insurance works based on a simple principle. First, you choose a policy that covers the accidents and incidents you want to protect against. Then, you pay a fixed amount in return for coverage. If a covered incident occurs while your policy is active and in good standing, your insurer will provide a payment.
This money can go toward repairs, replacing appliances and other items in your home, or for any purpose you decide is worthwhile. Instead of having to pay for these needs out of your own pocket, your insurance policy will help you get your home back to where you want it to be.
The financial security offered by insuring your home means one less thing to worry about when it comes to budgeting and planning for the future. Instead of wondering if the money you've saved for years – and likely have plans for whether it's retirement, starting your own business or something else entirely – will have to go to home repairs, you can rely on your insurance policy.
This idea is one of the foundational benefits offered by insurance. By finding a policy that addresses your needs and is within your budget, you can pay a relatively small amount to protect against the chance of a catastrophe that brings high costs for repair and replacement along with it.
A home is the single most expensive asset most people will own in their lifetimes. Insuring it is a logical decision that helps you address damage that may be caused by events outside of your control.
How to find a policy that meets your needs
Insurance policies are flexible, and that includes insurance for your home. You can customise a policy to align with your current finances, possibly adjusting payments and the types of events covered to focus on issues that are most common in Papua New Guinea. Certain man-made concerns, like burglary and accidental damage, can potentially occur anywhere.
Addressing natural disasters can require slightly more attention because of the physical location of your home. The PNG Natural Disaster Centre listed certain types of disasters that can threaten part or all of the country, including:
- Volcanic eruptions.
An assessment of long-term data by the World Bank found 82 natural disaster events struck PNG between 1990 and 2010. Additionally, the group noted that 25% of all natural disasters in the Pacific Island area between 1950 and 2008 happened in PNG.
This information is a powerful reminder of how the right kind of home insurance policy can protect your living space. Depending on where you live in PNG, your home may be more or less likely to experience some or all of these risks. Speaking with your insurance broker about the policy options available and their cost can help you design the right policy to meet your needs.