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Understanding Home Insurance
Understand Why it Is Important
Home bulidings and home content insurance is one of the most vital aspects of keeping your investment safe. Buying a home is probably the most expensive thing you will ever do in life so insuring it against eventualities is critical. Imagine losing everything you had ever worked so hard for in life. With the ever increasing rates of theft and so many natural disasters that can strike like fire and flood imagine the prospect of having to start again from zero should it all be wiped out.
In the past few years we have all witnessed an increasing amount of devastating accidents and with the economy being low crime and theft is on the increase. Home insurance be it contents or buildings doesn't have to be painful or expensive. All it requires from you is a little research and a small amount of money each month for your insurance policy cover.
There are a number of benefits that go along in obtaining an appropriate home insurance policy. Be sure to do your homework and have in mind exactly what you need insured and how much it would cost you to replace in a worse case scenario.
Research Well - Research Hard
Research long and hard before you take out an insurance policy as different insurance companies offer different clauses exclusions and inclusions. Do you need new for old or like for like replacement? What about accidental damage, are you clumsy and forever breaking things and knocking stuff over? Accidental damage is usually an option, get it if you can afford the extra on your premium, if not exclude it and keep your monthly cost down.
What about items you intend on taking away from your home, do you need them covered or not, for example an expensive ring or watch. The more that you know and the better prepared you are will ensure that you manage to get the best possible cover at a price you can afford.
You need to ensure that all your items are going to be covered for the correct amount. If you haven't got new for old and your 5 year old sofa gets damaged are you really going to be able to replace it for it's second hand value? Make sure that before you pick up that phone for your quotation you are well prepared and that you know exactly what you want and follow a few insurance tips to drive that price down.
Do You require Accidental Damage
Keep The Cost Down
As a homeowner there are some things you can do to keep the cost of your home insurance down. Ensure that all your windows and locks are of a high quality. Get an alarm fitted and join a neighbourhood watch scheme and of course, you can always up the excess amount payable on any possible claim. The excess is how much you are willing to pay before the insurance company step in. If you opt for a $200 excess and your claim is for $500 then the insurance company will pay you $300 towards any claim.
Sometimes an insurance company will offer a discount if you have more than one type of insurance with them. If you have car insurance or even life insurance check to see if the same company will offer a discount for taking out home insurance with theme at the same time.
Ensure you have a decent credit rating and no outstanding debt, this shows that you are responsible. Married men are also likely to get a cheaper quote than single guys although I would not suggest you go out and marry a stranger just to get cheaper home insurance..
The insurance company will always value your house against the current market value, location will also be taken into account along with crime rates in your area. These are things that you cannot do too much about but it is handy to keep them in mind.