Wednesday, 15 May 2013

Do's and Don'ts When Insuring Home

                     You know you need a homeowners insurance and you also know you shop around when you want to get the best thing. But when it comes to home insurance, you may  think to go for a safe side like a
company with which you do a regular business, or the company whose advertisement you see regularly on a television or someone your real estate gent recommended. As a result you may end with under insured or over insured.

Do's :-
     1)  Many homeowners find themselves under insured when they loose everything, even though they properly followed their agent and the rules. The promise of security that insurers advertise and sell is part of the contract you paid for. So it's up to you to enforce your rights under that contract.       
      2) Internet is a great thing and now a days easily accessible so begin your research with it. Don't just go with the one that looks good and make a deal. First call them, talk to a person and get as much as information you can get about them like they get on you. Remember one thing as much as you want them they want you.  
      3) Contact a reputable insurance company, agent office that is qualified and authorized to advice you about how to insure your home. Usually the advice you will get from an agent that only represents only one insurance company will be different from the advice you will get from an agent or broker who is independent and represents several competing companies.  
      4) Be clear to the agent or broker that you want to make your home properly insured and that you want to go for full replacement coverage. Mostly many agents fear that if they give you the true cost of fully insuring your home then you will run away some where to find a cheaper policy. So be clear that you will pay a fair premium for full replacement coverage.

      5) Answer all questions truthfully so the insurance company knows the exact size of your home, other constructions if available, style of construction, major improvements and your high value personal property items.  

      6) For good or extra security, buy the highest amount replacement endorsement you can afford. If you suffer a major loss and then turns out your insurer set your limits too low, this endorsement is designed to bridge the gap. Replacement cost endorsements are sold as percentage amounts above your stated dwelling limits. Most insurers offer 25-100% above limits. So see around for this protection.

      7) Few insurance companies offers different kind of discounts based on different things. If you're getting information from an agent about insurance but he don't talk about any discounts, then bring them up yourself. This is one more reason that you call around because every company offers something different.

      8) Make sure you tell your insurance agent about any improvement you have done to your home which may have cost $5,000 or more.

      9) To avoid extra controversy after a big loss make a video tape or photograph your home and contents. Keep them in a safe place and make copies of them and keep some off premises. 

Don'ts :-

     1) Don't rely on estimated sale price of your home to set your dwelling limits.

     2) Don't be a miser while buying insurance policy as its your biggest asset.

     3) Don't give false information regarding the size of your home to save some penny by getting a lower premium quote. 

     4) You should not use insurance to cover every small expense, just the big ones.

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