Many of us think that home insurance is a waste of money. Since the house is there and people are living in it does not mean that the house cannot undergo an unwanted event on it. Suppose there is an earthquake and your house gets completely devastated in it while you were away. Let us assume another case. Suppose there is a burglary in your house while you were away. The thieves entered and broke all your doors and windows, stole costly things and flee away which you realize later. Is there anything you can do? You can call the police. However, will they guarantee money back? No. This is the reason why people prefer to get a home insurance.
Home insurance companies will guarantee money back. Obviously, there are conditions that surely apply. Home insurance companies are in the business of providing security to our homes. The business is quite simple. All you need to do is pay monthly rentals or you may call them monthly installments. In return, of that the company assures you that they will cover any damage to the house.
There is a contract that you need to sign and so do the company. All the conditions are duly present in the contract. Now here is the catch. The contract is more of a legal document. Now obviously as business, they would prefer to cover the minimum and you would want to take the maximum. So, one must be very confident about the legal statements of the contract before signing it.
The legal statements will be clauses that tell you how much amount they will pay you back under what conditions. The catch here is that the conditions are confusing. They would have clauses like if one is on alcohol during house damage, the company shall not pay you back. Now, this condition is baseless as drinking has nothing to do with your house event. It might have a lot to do with your driving though.
Therefore, the catch here is to read the contract document offer very carefully before signing. Some companies are really good and customer friendly. They would make cleaner contracts but some do not do so. Most of them are there to rob the customer of his pocket in a legal manner. We need to file complaints to customer rights division as soon as possible.