Now that you are the owner of a perfect house and very satisfied with your decision of investment, it is time to get the correct policy to protect it. Majority of home owners are likely to buy a comprehensive home owner’s insurance policy. This type of policy guarantees coverage against fire damage, water damage, personal possessions, personal liability, vandalism theft and loss of use of the house. With so many insurance policies available it can be a daunting task to choose the right coverage for your home. If you are financing your home purchase, you must at least buy basic hazard insurance.
1. Know what is covered. No matter how simple this step might sound yet there are enumerable count of people who are unaware of the coverage provided by their insurance policy. For instance, according to a recent survey almost 14% of the respondents are unaware that their personal belongings could be covered under their home insurance when they travel abroad. Therefore, call your respondents and get clarified about terms of policy and check what your cover provides.
2. Determine how much you want. Insuring your home for its replacement value is always a good idea. An appropriate insurance coverage must include the costs to bring materials to the site and reconstruct the home if damaged or destroyed. The cost of reconstruction of any home is always more than what it was purchased for because of inflation. Insurance company never provides coverage for the land on which the house is built. Therefore high chances that the amount of your policy will be considerably low than what you paid for the purchase of your home.
3. Be aware of your claim history. Never forget to ask the seller to provide you with the history report of the home insurance claim. These reports present an outline of the previous damages and other claims that may have been incurred involving the home. The history also provides you with essential tips pertaining potential problems that might occur.
4. Get the facts. Once you have already purchased a house, mobilize as much information as possible to determine the potential cost for the insurance. The age of the fittings and fixtures such as electrical, plumbing and other systems within the home as well as the materials used during the construction can affect the cost of your premiums.
5. Know the geography.Irrespective of the cost and type of material used the location of your house can have a deciding affect on your insurance premiums and coverage availability. It is a common tendency among the home owners to pay more premiums willingly in areas more prone to natural hazards and calamities like flood, severe weather, natural disasters, etc.
6. Protect your financial assets. Repairing and replacing your property is also a significant part of your home owner’s insurance policy. The policy can go much further to ensure safeguard to your financial well being through liability coverage.
7. Maintain current records. Having an up-to-date record of your home’s content and structural condition is indispensable during claim processes during unthinkable occurrences. Therefore, it is very important to maintain a record of your possessions and how much you paid for each time along with the record for its current value.
8. Pick a good partner. It is always important to do business with an insurance company which you trust and has goodwill in the market. Never forget to review the company profile, ranking on customer satisfaction and complaint’s record before shopping insurance from them.
Sources and Citations : http://www.wikihow.com/Shop-for-Home-Insurance