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Learn about homeowners insurance coverage against the risk of collapse and compensation methods

Home insurance is one of the new forms of Egyptian society, but it is of great importance, as it is a kind of security on the simplest property of the individual, and the coverage includes the protection of homes, whether they are just buildings , or only content, or both, of the risks of fire, lightning, explosion, earthquake, storm. And flooding, overflowing or explosion of tanks, devices or water pipes, collision or collision caused by vehicles or aircraft, causing cracks or collapses, as well as riots, riots and labor disturbances.

Compensation will be made if the insured's home is uninhabitable as a result of the insured risks, with alternative housing - up to a period of 90 days - until the home is repaired again, and in the event of fire or explosion and the injury or death of the owner or of one of his relatives as a direct consequence of these. Risks that occurred in the place of residence, the insurance company will compensate for death or permanent total disability and medical expenses up to the insured limits, and may need a separate appendix in case the insurance coverage needs to be expanded to include additional risks such as storms , floods, water leaks from pipes, damages, riots and explosions. As a result of machinery and equipment that are part of the insured property, and if the homeowner must pay any legal liability to pay a third party as compensation for the accident that resulted in injuries (fatal or non-fatal) or damage to property property, the company will help pay those costs.

There are three levels of insurance coverage

  1. Actual Cash Value - Covers the actual value of the home and property after deducting depreciation from the actual value at the time of loss.
  2. Extension of replacement cost: actual monetary value without deducting depreciation, to provide the ability to repair or rebuild the home to its original condition.
  3. Guaranteed replacement cost - Some insurance companies offer extended replacement coverage where the costs of repairing or rebuilding the home are paid, even if it is more than the policy limit at the time of loss, and this means that the insurance company covers more than the price of the house when you buy, but there is usually a limit 20-25% higher than the limit.

Some insurance experts from around the world advise all homeowners to purchase guaranteed replacement cost coverage if they plan to stay in the home for a long time, as homeowners need adequate insurance to rebuild the home, preferably at prices current that may have increased since purchase or construction. .

The truth is, homeowners often make a mistake when they buy "home only" insurance coverage to cover the value of the mortgage, but this coverage is generally equal to 90% of the value of the home due to fluctuating rates. Market prices, so it's always best to get coverage above your home's value. Guaranteed coverage will absorb increased costs and provide comprehensive coverage for the home if construction prices rise.