In these times of economic gloom and recession it has never been more important to make sure that you spend your money wisely. This is just as true of purchasing Home-owner’s Insurance as buying goods. There is not much point paying out good money for a policy that may be worthless to you, so, here are a few tips to bear in mind when you are buying Home-owner’s Insurance.
EXCLUSIONS AND EXCESS.
Most policies have an excess. If it is for 80 dollars, say, this means that the insurers will only on pay out claims over this 80 dollars, and only the amount above. As most policies offer special no claims discounts it is worth considering the pros and cons before making a claim. A 100 dollar claim from such a policy would only pay out 20 dollars and therefore may not be worth the time and effort. When you look at the loss of a no-claims discount also it is easy to see that such claims are not really viable.
Also amongst the list of what you are covered for will be the policies exclusions. This could mean that, for example, you are not covered against flood damage, which may be something important to you. So make sure that you know the excess of your Homeowner Insurance, any exclusions and no claims discount.
THE PRICE AND PAYMENT OPTIONS.
Some Home-owner’s Insurance is just too expensive. This could mean that you default on your policy and end up with no cover. It is better to take out the best policy that you can afford and upgrade when finances permit.
The cost of a year’s Home-owner’s Insurance can be quite a large sum of money. Check the payment options with your insurer for the best option for you. Many offer monthly direct debits, and the like, spreading the cost over a year, to help people struggling with large one off payments.
Personally I would also go for a reputable, established Insurance provider rather than a here today gone tomorrow one. If you shop around you should be able to find a good deal for a policy that will suit your requirements. Use the Compare Consumer sites on-line to get a personalised quote and bag a bargain. Remember though that some comparison sites have a vested interest in recommending one provider over another.
READ THE SMALL PRINT.
It is so easy to take out Home-owner’s Insurance and just stick the paperwork in a drawer without ever reading it. However it is wise to read the full document as soon as possible. This means that if there is something that you do not understand you can query it. It also means that you should be fully aware of what you are covered for and what you are not. You also need to know that the Insurer is providing the cover promised. Of course, as with all such documents, you will need to read the small print also, just in case.
APPROPRIATE HOMEOWNER’S INSURANCE.
Before you contact your Insurer about taking out Home-owner’s Insurance sit down and list the value of what is to be covered. Most of us think we have nothing much of value. However when you look properly around your home and consider the cost of restoration or replacing it is frightening.
Always err on the side of caution and overestimate. This should prevent you ending up out of pocket. If you have additional expensive items, such as antique furniture, it may not be covered on your normal Home-owner’s Insurance. If this is the case ask about additions to your policy. Often the extra premium will be reasonable and offer peace of mind.