Buying a home is a dream a lot of people have and it is likely to be the biggest investment you ever make. While you might know that you need to protect your home by getting the right home insurance, there are so many options that it can be confusing, frustrating and time-consuming.
We have put together a list of what you should consider when getting home insurance to help you navigate this process.
1. Know What is Covered In Your Home Insurance Policy
Before committing to an insurance provider, it is important to ask what exactly is covered.
It is also a good idea to ask the different circumstances under which each of the items in the list is covered. For example, there are home insurance providers who will cover your belongings when you travel abroad.
2. Take Stock of Your Belongings
Having an estimate of how much it will take to rebuild your home or replace the contents of your house can make it easier to choose the right policy.
Having such an estimate ensures that you do not end up taking out an insurance policy with a lower cover than your belongings, or pay too much for coverage you might never need.
Since many insurance providers use the same estimate to calculate your premium, knowing the estimate could also give you an edge in negotiating for lower premiums or better coverage at the cost of their basic coverage.
Documenting your possessions, especially in cases where your insurance covers loss of personal belongings, is usually as easy as photographing the items and recording their serial numbers.
Doing this not only proves that you own these items, but also helps support your claims.
Keeping your receipts as proof of purchase is also important. Your insurer might ask for them when you make a claim.
3. Choosing The Right Provider For Home Insurance
Shopping around before settling on one insurance provider is a wise decision. This is because different providers have different policies that cover different things.
For example, a provider might have a policy that covers the house, its contents or both. The price of the policy you get will be determined by what the policy you choose covers.
Getting quotes from different providers and comparing them is a great way to not only end up with a great insurance quote, but to also ensure you end up with the right one.
A helpful resource for comparing insurance quotes is Quotezone.co.uk.
This site lets you search for cheap home insurance from over 50 providers. This increases your chances of ending up with the exact type of home insurance you need.
Comparison sites like these also save you time by helping you purchase cheap home insurance online or by phone even if you need to pay monthly or annually. Why not see if you can reduce the price of your insurance by using them?
4. Ask About Annual Increases
Most insurance policies increase yearly due to inflation (rebuilding costs increase every year).
It is therefore important to ask how much the increase will be the following year.
It is also a good idea to ask around to learn how insurance companies increase their premiums.
5. Ask for Extra Coverage
Most people are afraid to ask what extra coverage they can get with the policies they are considering.
If you ask, you might be surprised at what is covered.
Also, some insurance providers will not tell you some of the things that are covered.
This gives themselves some room to manoeuvre in case anything happens to something they never disclosed.
Some of the extras you can get if you ask include cover for garden features and additional buildings. Also, damage in case someone needs to break into your home during an emergency. Water risks and coverage in case your home becomes unsafe or uninhabitable for some reason.
Once You Have Insurance
Once you have the home insurance, it is important to be careful about the claims you make.
It is generally a good idea to only make claims for items that are too expensive to replace.
This is because many insurance companies do not like insuring people who keep losing items, having them destroyed or stolen.
In these cases, you can lose your insurance. Or your insurance company will increase your premiums to cover for your frequent claims.
You will end up losing because the difference in premiums will be higher than what it would take to replace smaller, cheaper items.
In case you need to make a claim, it is important to document the damage or loss thoroughly, take steps to prevent further damage and losses, prepare an itemized list of all items lost or damaged and file a claim within 60 days.
Getting home insurance is something all homeowners should get.
When getting the insurance, be sure to ask what it covers so you can get not only your house, but also your belongings insured.