Your home is more than just a structure or a piece of property. It's also the shelter that protects you and your family, and an asset that has significant financial value.
Losing your home to a fire can be devastating. The event of a fire itself can be terrifying and extremely dangerous. In the aftermath, seeing the destruction of your home and the possessions within can be emotionally challenging to you and the others who live in your home.
House fires can threaten anyone's livelihood
House fires can happen at any time, and they're rarely predictable. They can be caused by many things, including a stovetop accidentally left on, candles in the home getting out of control, wildfires that spread to residential areas or lightning strikes.
In 2017, a series of fires that destroyed 15 houses near Port Moresby left at least 150 people without a home, according to ABC News. Fortunately, there were no deaths reported to be associated with the event, yet these people lost many of their belongings.
Home insurance can help families financially recover from fire. However, fewer than 5% of Papua New Guineans currently have insurance policies, according to The Centre for Excellence in Financial Inclusion.
Here are three specific ways home insurance can help after a fire:
1. Replace or repair belongings
A fire can reduce an entire home and everything within to a pile of ashes. Rebuilding after such a damaging event is difficult and expensive. Home insurance provides the funds needed to replace or repair many of your belongings, including:
2. Rebuild or repair your home
Fires can completely demolish a home. When this happens, it's essential that the inhabitants promptly find a way to rebuild or repair the house so they can recover as quickly as possible.
Of course, as any homeowner knows, houses are expensive. It can be difficult to afford a rebuild of your home. In these events, many people have to rely on the money they've saved up over the years. However, depleting your savings to rebuild after a fire can leave you in a weakened financial state, with few funds left over to pay for other expenses.
Home insurance provides you with funding to help you rebuild without having to use the money in your savings account. This way, you can rebuild quickly while maintaining good financial health.
3. Provide temporary accommodations
If a fire leaves your home uninhabitable, you'll need a safe place to stay while the house is rebuilt or repaired, or while you find a new home to relocate yourself and your family to. Home insurance will help you pay for temporary accommodations while you determine the best next step for securing permanent housing.
How home insurance works
Once you purchase a home insurance policy, it's available to support you during times of trouble, such as a fire. Here's the process policyholders go through to realise the benefits of their policy:
- After a coverable event like a fire, contact your insurance agency right away.
- File an insurance claim, and assess the extent of the damages to your property, including your home and the possessions inside it.
- An insurance representative will review this information, then provide funds to repair damages and replace losses.
To ensure you're prepared for unexpected disasters, it's best to have a home insurance policy in place as soon as you buy a home. To learn about home insurance policies available to you, reach out to Trans Pacific Assurance Limited.