A home is your safe haven and the most important investment you make. And a home insurance will protect you from any losses that might occur in times of thefts, storms or fires, whether you are staying in an apartment on rent or have your own place – homeowner’s insurance is necessary. There are generally two types of insurance: building insurance [where only the building is covered – for home owners.] and contents insurance [where your possessions inside the house is covered – for home owners and renters]
But you need to remember that with each passing year, the rules change and you have to read the contract and fine print carefully.As with any insurance, you will need to provide information about your occupations and history of employment, address, marital status, age, date of birth and the Social Security Number. They will also be checking your credit and insurance history and your criminal record.Remember to take a ppi claim, if your homeowner’s insurance comes attached with a PPI.
The value of your home will be based on its age, the location, nearby hazards and the materials that went into building it. You have to account for each item and its value to know the exact value of your house and take out an appropriate amount for the insurance policy. This insurance is not just for the outside, it’s for the stuff that’s inside too.
While natural calamities like storms and hurricanes are taken into account in a homeowners insurance, earthquakes and floods are not covered and you will need to take out a separate policy, if you live in an area where such calamities are prone to occur.
Remember –
1. First, estimate the correct value of your house by the insurance agent, or better yet get it done by a professional contractor. Never underestimate the value of your house.
2. Take into account the cost of rebuilding. Don’t just estimate the value of your house at present; remember there will be damages that you’ll need to repair.
3. Be thorough in your knowledge about the policy;make sure you know about the deductibles and the various rules and clauses that apply.
4. Compare the costs of policies offered by different companies, with the information available online and choose wisely.
5. There are different types of policies available, you need to choose the one that suits you and your home the best.