Things that You Should Do and Avoid When Buying Home Insurance

Avoid When Buying Home Insurance

Buying a dream house or building it from scratch is almost always a very emotional affair. However, a fire or a disaster that destroy the house do not only dashed dreams, but also drain your wallet completely. That is why, it is always better to secure a home with adequate property insurance to protect against untoward incident. Before choosing an insurance policy, you should consider whether such policy can really help to secure the property, because if not, you may still suffer losses when disasters occur. Here are some simple tips and tricks that can be used as a guide in choosing a home insurance.

  1. Choose the right policy

Home insurance is not only used to compensate for the money lost in case of a disaster or untoward events. Home insurance also should be used to repair, remodel or renovate homes after the disaster. In other words, the post-disaster recovery should also be included in the policy. For example, assume valuables at home helped perish in fires. In this case, one must be able to claim damages arising appropriate coverage that has been taken, and some extra moneys are for the cost of cleaning up the debris and repair.

  1. Choose the adequate coverage

Determining the sum insured based on the valuation of the goods and the property is very important to maximize the value of the replacement. Conversely, inadequate insurance money would only leave the not small financial burden when your property is damaged by a disaster. That’s because, to understand the elements that are covered by the insurance plan is very important, before you choose a particular policy. For example, before buying a property insurance policy, you should know the common characteristics in the vicinity of your property. If the property is located in flood prone areas, for example, flood insurance becomes mandatory.

  1. Checking the claim settlement ratio of insurance companies

Do not just choose an insurance company that only offers low premiums. Property insurance involves a huge amount of money, so you should be extra careful when choosing insurance company. One easiest method and the most effective way is to browse the online discussion forums and ask questions directly to the insurance company in question to obtain comprehensive information.

  1. Read the policy carefully

Never ignore the policy document and thought that after having property insurance policy, you will automatically be safe. Read carefully the policy and check whether all the conditions have been the way that you understand and want. If there are errors in the policy document, even if it’s just a spelling error address, immediately report it to the insurance company in order to do repairs. Differences in writing of the name or address could cause difficulties later when the event of a claim.

  1. Extra points

Each time you select an insurance policy, always make sure:

  1. You have and store all documents related to the property (land certificate, the UN, etc.) for purposes of filing a claim.

  2. Make sure the address or location of the property mentioned in the policy.

  3. Save the valuables document or electronic items that may be required when making a claim.

  4. After understanding the important factors in the property insurance policy, here are some things that you should avoid when buying an insurance policy:

  • Never ask anyone (except family members) to complete the application form of property insurance.

  • Never hide facts relating to property, such as damage occurred in the past, renovation or equipment in your home.

  • Avoid exaggerating or declare one of the notional values of the property that could invite a dispute when making a claim.