Home insurance is in many instances compulsory. If you have taken out a mortgage on your home, the mortgage lender will have required you to take out a minimum insurance on your home. This however might not be sufficient and if you have not taken out sufficient insurance cover you will be putting your home at risk.
The insurance on your home covers many aspects of insurance. Generally it is broken down in to two categories. There is the insurance on your building which would cover fire or storm damage and the second aspect is its contents. This can be one of your biggest insurance cost items. Your furniture and appliances, which includes the TV, micro, computers etc. make up a substantial value. There are options to insure for new replacement value, or the market value of the item.
The clothing and valuables that you might possess can also make up a considerable amount and you should take advice as to how much you should insure for. Jewellery and valuable pieces of Art and antique furniture can be very contentious items. Those items of high value will have to be professionally assessed before they can be included. Such items fall under a category that have to be itemised, and often special rules apply. In order to be covered you might have to have a secure safe in your home.
A factor that you have to take into account is that the Insurance company sets a figure they call “Excess”, this being a value figure that you have to pay up front in the event of a claim. This is often negotiable and you should be aware of it when you are discussing your insurance needs.
In many circumstances having a burglar alarm system can reduce your premium and should be considered as part of your insurance cost.
Understanding your insurance policy is very important and you should take time to read all the conditions. Here are some examples. Water damage, if a pipe leaks and water damages your carpet, or a plug burns out and cases some damage on the table. How far are you insured?
Once again it should be stressed that an important aspect of your dealing with the insurance agent or company is that you have confidence in the agent and can communicate easily should the necessity of a claim arise. There could be nothing worse than having a claim and not being able to speak and discuss your claim because you do not have the direct contact’s name. Sometime insurance companies change hands and although you have been paying your premiums you find that you don’t know who is now dealing with your policy.