One of the most challenging decisions to make while investing in a insurance cover for your home is how much to actually insure your building and its content for. One would want to over-insure their home and pay more premium than necessary every month or year; or on the other hand, discover when you have to make a claim that the cover your purchased is inadequate.
Since every individual home consists of different contents, and is at different risks that depend on the area, locality, local weather conditions and other such factors, this simple guide should help you in making sure that your house insurance is sufficient for your personal needs
1.For a cover for your Structure
-When you are buying cover for your structure, make sure you take a look at the specified amount or limit assigned for the buildings cover protection.
-Take into consideration how much it would approximately cost to rebuild your home in case it was damaged. Remember that this is different from its resale value, as these amounts may differ to a large extent.
-Try to invest in a policy that provides accommodation for you and your family in case your home becomes uninhabitable.
-Check if the policy you purchase covers outside buildings such as sheds, garages and other structures you may have outside the main structure that forms your home.
-If you live in a high risk flood area or an earthquake or tornado prone zone, does your insurer provide you a cover?
-Also find out what other permanent fixtures and fittings will be covered by your insurer besides the overall structure of your home.
-The premium you pay for your home cover may also depend on the crime rate of the locality that you reside in.
-Make sure your property is a listed building and bring it to the notice of your insurer if it includes any fancy style or unusual features.
In addition to this, you may also want to make sure that the contents of your home are also covered in this policy. Here is what you check for while taking out a home cover
1.What is the specified amount or limit for the content cover protection?
2.Make sure that you have all your contents valued accurately.
3.If you are housing any valuables and antiques in your home, check with your insurer if it makes more sense to take out a separate cover for these items. It may not only be more cost-effective but you will be also able to purchase a special cover specific to your contents.
4.If you have pets or children at home, consider adding accidental damage in your policy.
5.How far outside your home will the items be covered? For example, if you intend to get your laptop insured it makes for sense to get a separate insurance since there are chances that you can damage or lose it during travels as well. Most home insurance covers will not protect these items when you travel abroad.
A typically house cover is considered void if you provide false information, lack general maintenance on your policy and if you do not carry out necessary repair works on your previous claims.
