Home insurance is a must-have for homeowners mainly because of
the protection provided by the policy against the substantial losses
borne of natural disasters, accidents and thefts, among others. But not
all home indemnity policies are created equal to your unique needs and
wants so insurance brokers must be consulted on the matter before any
final decision is made.
Why Buy
Homeowners are well advised to purchase home indemnity policies for the following reasons:
•
Satisfy the requirements of your lender. Banks, among other mortgage
lenders, require home loan applicants to secure insurance as protection
of the lenders' investments.
• Protection against lawsuits. Home
insurance policies can cover injuries sustained by individuals while
walking up to your house or while staying in it. Ask insurance brokers
from the likes of our company for advice on coverage.
• Protection
from loss caused by natural disasters, thefts and man made accidents.
Your house can be insured against natural occurrences like floods,
earthquakes and tornadoes as well as losses from thefts, burglaries and
explosions, among others. Basically, the insurance company will shoulder
all or part of the total costs for the repairs and/or replacements of
the house and/or the contents therein.
The premiums paid for the home indemnity policy can pay off when the house and/or its contents sustain damages, losses and wipe-outs.
How to Buy
As
insurance brokers know, however, one-size-fits-all standard home
insurance policies are inadvisable although these also have their
merits. Keep in mind that your needs and wants in coverage will be
unique in comparison with your next-door neighbors. For example, you may
want wider coverage to include the contents of your house - your
collection of valuable artworks are displayed on the walls - instead of
just the structure whereas your neighbor is happy with basic coverage.
Your
first step then is to consult with one of the most reliable insurance
brokers in your area to discuss your options. Your main options include:
•
Building insurance refers to coverage on the structure itself in the
event of damages/losses caused by fire, flood and other reasons. Be sure
to check the coverage, clauses and costs of the insurance to avoid
inconveniences in the future.
• Contents insurance pertains to the
coverage on the contents inside the main building and its adjacent
structures (i.e., sheds and garages). Again, check the particulars.
You
can choose to have just one of the two coverage types or both coverage
depending on your needs and wants in the product. Remember that the
coverage and costs in premiums will depend on location (i.e.,
flood-prone areas have higher premiums for flood coverage).
You
should also look into the sum-insured aspect with your insurance brokers
because your premiums will be affected. The higher the sum insured, the
higher your insurance premiums will be. The implication: If you are
paying higher than the actual market value of the property, you are
paying for too much; if you are paying lower, then you are not
sufficiently covered.
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