5 Tips to Help Homeowner Choose the Right Insurance
Posted: Apr 23, 2020
Considering insurance can trigger you to think about all the terrible occurrences that could happen and cause serious damage to your property – be it your actual home, investment properties or some of your prized possessions. Well, thinking like this does not make you a pessimist, rather a responsible person who appreciates the need to get the right insurance for your property. Here are a few tips that will help you through this process and to make a well-informed choice.1. What It Covers:
It is essential to know the terms of your policy so that you are aware of the damages it covers. Usually, the insurance will cover damage to your property and some possessions in the event of theft, fire, storms, or vandalism. Typically, it also provides liability coverage if someone gets hurt on the property and makes the decision to sue. This policy also covers the temporary shelter cost so that you do not have to pay extravagant hotel bills until they fix your house.
If you own multiple connected properties, then the usual homeowner's insurance is not enough. The risk associated with the single property is not the same as the properties that are connected. You will have to go for the block of flats insurance which covers much more than the usual homeowner's policy.
Most insurance policies also cover the belongings you take with you while you travel. This includes the things that get lost on the way, like a laptop lost by the airline or your jewelry inside the stolen car which your auto insurance will not cover.2. What It Does Not Cover:
A standard home insurance policy will not cover damage due to earthquakes, landslides, power failure, nuclear hazards, war, bad repair, government action, or flooding. Though windstorms are covered typically but insurance companies may exclude hurricanes and tornadoes in some high-risk areas.
The coverage for flooding can get tricky as ground flooding or backed up sewer may not be covered, but it will cover rainwater or burst pipe damages. You need to consider supplement coverage, especially if your area is prone to floods and earthquakes.3. Why You Should Take Time to Shop Around:
Before you commit to a policy, shop around to compare policies by different insurance companies. Speaking to different agents will give you a better idea of the coverages you need and the ones you do not need. Do not just limit yourself to that as it really matters who your insurance agent is, especially when the time comes to file the claim.
Also, as you shop around, the agents will give you a better deal to sell the policy, hence you will receive certain added benefits.4. Which Preventive Measures Can Reduce the Premium:
The secret to reducing the premium amount is by taking preventive measures that can avoid any incidence occurrence at home. Install working smoke detectors, burglar alarm, and enough deadbolts in your house and you will see a considerable amount of reduction in the premium. Insurance companies cap our premium price based on the risk they foresee, hence reduce the risk liability to reduce the premium value.
Also, you will often find that a good insurance broker has excellent relationships with a range of insurance companies, so the brokerage can often get you the best deal.5. How Your Jewelry Is Covered:
Most of us keep pieces of jewelry at our home, worth a lot, hence choose an insurance that covers the value of the jewelry. You need to also make sure to stretch the limit on jewelry as your jewelry would be much more valuable than the basic insurance coverage provides. Get an appraisal and consider buying a supplement policy to cover the value of your entire jewelry collection.
Protecting your home is not just about ensuring safety against theft, structural damage, or natural calamities. It is also about making you feel secure about where you live, which only an insurance with good coverage can do.
Michael Kelly is a Freelancer Writer, Entrepreneur and passionate blogger. A writer by day and a reader by night.