DIY : How to choose the right insurance for your new home in 6 easy steps
Home insurance is very important as it can help you pay for unexpected big expenses that you may not afford. As much as we do not want to think about it, we must prepare for it. Houses are susceptible to fire, theft and other disasters.
Getting insurance can be complicated because there are so many things to think about especially the clauses in the policy — it is easy to get lost. Most often people get upset with an insurance company because of misinformation and misunderstanding of the insurance policy. Insurance companies strictly
follow their contracts, so this is why there are 6 easy steps on how to choose the right insurance for your new home.
Determine how much
The first thing you need to know about the home insurance is how much it would cost you. It is understandable that you need to look for a home insurance that is within your budget. You have to bear in mind though that this is only the first step before deciding if the home insurance in front of you is the best for your hard-earned money and your home. Yes, you may be looking for an insurance that is affordable for you, but the coverage should save you more and fit what you really need. Its not like you are getting a home insurance for the sake of "having one, just in case.
Know claims history
Understand your new home’s claims history. You have to ensure that you are getting something that will surely save you and can get you covered. Some insurance companies will run a loss history report when you apply for insurance on the property and they can tell you if there have been prior claims. This is important for the insurance company for risk management and is more important for you. Insurance companies sometimes charge their coverage depends on the risk history and you have to be visible to how they come up with the quote that they will give you.
Insurance Policy Wordings and Coverage
To reiterate, insurance companies act according to their contracts. It is very important that you have the full understanding of the special limits and coverage indicated and stated in your contract policy. Home insurance covers the property, contents and personal liability but there are limitations and clauses that will tell you specific details of the coverage. If there are clauses and wordings that are not clear to you, it is a must that you ask the insurer to explain them to you.
Choose Home Insurance that will fit your Lifestyle and Needs
You should pay for a home insurance that will cover your lifestyle. If you have complete furniture and appliances at home, you need to learn about the coverage of your personal belongings such as appliances, clothing, furniture and electronic equipment. In addition, if you are working at home or have
extra resources at home for your sports and hobbies, check if you can have coverage on secondary properties like sports equipment, computers or fine arts.
Choose Home Insurance that can also cover your family.
Home insurance can get your family covered too. If you have a family, you must understand who are covered under personal liability — you, your spouse, your kids. Know if they have age qualification or limitations. Understand deeper for scenarios like if you have visitors or someone sleeping over, know
what the coverage will be.
Choose home insurance that can offer you discounts.
There are insurers who take into consideration providing discounts to an already secured home and/or to senior citizens of certain age. Homes with smoke detectors ad CCTV are considered secured but just need additional insurance in place for worse incidents.
Shop around for coverage. You can’t deny yourself with an affordable yet full coverage of what you exactly need. Obtain insurance quotes from at least 3 other insurers for comparison.