Home insurance is an essential element that every homeowner needs to acquire. Homeowners must take precautions against the possibility of unforeseen occurrence such as burglary, fire or freak storm that results in a loss or damage of their home and contents. To ensure that the home and contents can be replaced when they are damaged or stolen, it is important that a suitable home insurance policy is chosen.
Below are 5 helpful tips to help you decide on the right home insurance policy for your property.
1. Do Your Own Research
Shopping for insurance on the net is deemed as a convenient and trusted option amongst potential insurance buyers. This is so because researching for quotes on line is very straight forward, stress free and quick.
Homeowners should do the following before deciding on the right policy:
• Visit comparison websites
• Use the free tools to get a shortlist of policies that meet personal requirements
• Obtain free quotes from the various companies
• Study the items covered in the standard policy
• Read the terms and conditions
• Look up the credibility of the home insurance
Once decided, the next thing to do is to arrange meetings with a representative of your preferred insurance agency.
2. Get a Valuation
Homeowners who want to ensure full insurance cover should get a realistic valuation of rebuilding costs or consider insurers who offer such service under insurance protection. As a preparatory measure, homeowners should compile a list of possessions such as furniture, jewellery, accessories and tools kept in and around their property, together with their value. Having documented evidence such as keeping records of serial numbers and the prices of new items will help expedite future claims.
It is imperative to store a spare updated compiled list outside the home for easy retrieval in the future, such as at work or at a sibling’s or relative’s house.
3. Decide on your level of cover
Homeowners should know what level of insurance they want and take note that replacement costs vary depending on what is needed to replace. Homeowners should also take note of what is covered in a home and contents insurance respectively. The two components (home and contents) can be purchased as a separate insurance from the same or different insurer or as a combined policy. In general, insurers offer lower premiums for a combined home and insurance policy.
Unlimited cover for accidental glass breakage, flood and landslide (caused by storm or leaking pipe) is commonly included. Homeowners should carefully decide on the extent of cover needed for their property and its contents by examining the value of their home and possessions and evaluating the necessity and likelihood of claims featured in each level of cover.
4. Look at inclusions and exclusions
Homeowners should study the covers included in various policies offered by insurers. What is labeled ‘extras’ under by some insurers may be included as standard by others. Take note of what is covered and what is not prior to making a decision.
5. Shop around
It is good practice to compare insurance policies offered by different insurers using online comparison tools. Investigations based on home insurance premiums offered by various companies have shown that there is a vast difference by about $200. Homeowners should invest some time in shopping around for an affordable premium that offers top quality insurance protection.
Finding the right insurance policy can be a time-consuming and mind-boggling process. At the end of the day, it is worth the effort when a suitable policy cover that meets your requirements as a homeowner is eventually found. Being prepared for any eventuality is a crucial quality of every responsible homeowner.