Chances are that your home is the most valuable asset that you own. This is why the very thought of a scenario in which it gets damaged or destroyed might cause a major inconvenience for your lifestyle. For those who are landlords, destruction of property and its contents are a direct loss of income. In their case, this is even more likely, seeing as how it’s impossible to make a 100-percent-accurate assessment of the tenant (everyone can act nice until you leave) and not everyone is careful with their rental home. So, buying insurance is your only way out. Here are the top six tips for homeowners looking for insurance.
Value instead of cost
There are some instances where the insurance is a mandatory requirement and you don’t feel like such a thing is even necessary, to begin with. Here, it’s only natural to expect that you’ll cut costs on every corner. However, if you intend to get the insurance for its original purpose (financial insulation in the case of an emergency), you need to worry about coverage. Here, as well, you’re in a bit of a tricky spot, seeing as how getting insurance that covers everything might cost an arm and a leg. Therefore, you need to find the middle ground and focus on the value that you get for your money. What you’re looking for is cost-efficiency.
An estimate of the rebuild cost
The next thing you can do is consider the worst-case scenario (regarding your property) and make an estimate of how much it would cost you to rebuild the place from the ground up. We’re talking about rebuilding the place, as well as furnishing it with the inventory that’s similar to that which you currently have. Naturally, in order to get there, you need to ask for a professional evaluation. This is something that you should ask your bank or your mortgage broker for, seeing as how they’re well familiar with the market value of the property.
Look for professional advice
You also need to understand the importance of protecting your home from the perspective of a professional. Therefore, you should ask for a home insurance quote from an industry veteran, seeing as how they might give you a new perspective on this topic. Keep in mind that depending on the type of insurance that you’re interested in, you may find a suitable piece of advice on how to proceed. In general, you have to choose between building insurance, contents insurance, as well as building and contents insurance in one policy. Also, provided that you’re insuring a rental property, you can even apply for landlord insurance.
One of the aspects of insurance that not a lot of people pay attention to is potential excesses. What this means is that you need to receive enough money to cover any damage that is indirectly caused by the disaster. For instance, if your fridge was to break down due to an unexpected power grid overload, the cost of the repair or replacement would be covered by your insurance. However, all the food that got spoiled due to the fridge malfunction might need to be replaced, as well.
Understanding the exclusions
One of the most important things you need to understand in order to avoid getting unpleasantly surprised at some point in the future is to understand what is excluded. For instance, leaving the place unoccupied for 30 days in a row may mean that your household insurance doesn’t apply when it comes to anything that takes place in this period. Keep in mind that all of these exclusions have to be stated in the policy, which is why you need to read the fine print.
In the end, you need to keep in mind that there are many situational factors regarding the insurability of your home. For instance, the older the home is, the more likely it is that something might start going wrong in it. Other things you need to check are the plumbing and electrical works, the type of roof that you have, the size of the home, as well as its location. Once you’ve considered all of this, you’ll be well on your way to get the ideal insurance policy for your property.