With so many home insurance products on offer, selecting the right insurance policy can be an overwhelming experience. But you can make use of some simple guidelines and tips to make the task relatively less taxing and easy.
This first thing to check in a home insurance policy is the extent and type of coverage offered. The requirement of coverage may differ for different people and it’s best to give this some thought before going out shopping for a suitable home insurance policy.
Depending on your need, you may also wish to modify the coverage to include or exclude some things. For example, most policies do not include home office equipments or the belongings of the tenants. You might need a custom policy with higher premium if you want these subject matters to be covered under your home insurance.
At times, people need some particular risks to be covered by the policy. For instance, most of the standard home insurance policies do not cover damages caused by earthquakes. If you are living in an area that is prone to earthquake, then you may need some extra insurance cover for your house.
Other common things that are not covered under these policies include damages caused by acts of terrorism, nuclear meltdowns, flooding, hurricanes, pests, pets, mold, sinkhole, mudslide, poor maintenance or neglect and sewer backups. Damage caused by fire however is included in most standard home insurance policies.
After checking on the coverage, you should now focus on the kind of relief that you will get under the home insurance policy. You must ensure that you will get enough funds to rebuild your house in case of an unfortunate disaster. You must also make sure that your insurance policy will cover your rental costs while your house is being repaired after damage. The time period for which rents will be paid under the ‘loss of use’ clauses should be enough to repair your house.
You should also insist on replacement value of goods rather than their actual cash value. This is because many other costs in addition to the original sale price are included in the replacement value of goods.
When you are seeking a home insurance policy, make sure you make full disclosures about various risks around your house. You must also state various factors that will decrease the risks or potential damage to the house such as proximity of the fire station, safety equipments installed and other disaster preventive mechanisms.