The Top 7 Things Home-Owners Forget While Buying Insurance for Their Homes

Buying a home is a significant milestone in the life of most people. It’s probably the most substantial sum of money most of us invest. However, with this blissful feeling also comes the fear of uncertainty. To relieve this feeling of anxiety, it is advisable to purchase home insurance.

Not everyone knows how to buy insurance, what their policy does, when to make policy changes, why it is priced the way it is or – most importantly – who to trust, and how to take control of the process.

Although home insurance, is designed to safeguard your beautiful home, it has its own limitations. To make the process just a little bit more transparent, we’ve made a list of things you should remember while buying home insurance. Or rather things what most people forget while doing so.

Whether you’re a first-time buyer or a long-time owner on the look-out for insurance, make sure to consider these things:

  1. To Check if the Coverage is Substantial

Home-owners often ignore the amount of coverage they’re signing up for. Sometimes to lower the premium, they choose a lower coverage. This is a risk in certain situations. For eg. what of the policy does not allow them enough to rebuild their home if needed.

Therefore, it is essential to check the amount and then accordingly purchase an amount of coverage equal to at least the estimated replacement cost. Of course, it is also advisable to evaluate the construction materials used in your area to get a more accurate reconstruction cost.

Another question most home-owners forget to ask their insurance company is about the recent home improvements they may have carried out such as bathroom remodels, new kitchen appliances or even creating an entertainment area. Considering all these upgrades is essential because they can significantly increase your home’s value. These may require additional insurance protection.

  • To Verify the Policy Covers All You Assume it Does

Regular policies only insure things such as smartphones, computers, some items of furniture, and home appliances. Other valuables usually require additional coverage. The problem is, while buying insurance, home-owners may not be not aware of the extra protection they might need for those valuables.

Whether it is expensive jewelry or some antique piece of furniture, some things are not covered by standard home policies. Therefore, it is important to identify exactly which valuables your home-owner insurance covers, and which need extra cover.

  • To Confirm if the Policy Includes Coverage in case of a Natural Disaster

Our weather seems to have gone insane over the last few years. Do you know if your insurance policy includes adequate coverage against natural disasters such as earthquakes, floods, and extreme weather events? Most home-owners don’t validate the situations covered. Calamities don’t take place often, but they do arrive unannounced! So, check your policy document for details of the situations you are covered against. Bonus tip -check if the cover you have will pay for the repairs to your home resulting from natural disasters.

  • To Cross-Check whether Low Premiums Serve the Purpose

There’s no denying -low premiums are attractive.  No one set’s out thinking something could go wrong, right? So, when buying insurance cover, don’t join the legion of home-owners making the unwise decision to go with a lower premium. You cannot buy insurance policies without weighing the pros against the cons. While the price is a critical factor, it is also essential to check whether you will be able to afford the expenses involved in the event of an uncovered loss. In insurance, it’s better safe than sorry.

  • To Glance through the Common Claims that Usually Come Up

Learning from others is a great way to avoid falling into bad situations later. To safeguard your home, it’s a great idea to find out about the kind of claims that people are making in your neighborhood. Are you covered for those or are you missing something?

  • To Check if You Need Additional Coverage in Case You Rent Out Your House

Renting a house means extra income, but it also means additional risk and therefore, increased liability. Don’t forget to check if you need additional coverage to address damage from tenants. Bonus tip if you depend on the rental income -check if there’s a policy that can cover you in case there is a loss of that income due to any issues or damages to the property.

  • To Check for Available Discounts

Ok, this is just between us, Ok? Honestly, most people forget to speak to their insurance company about discounts that may be available. For instance, if you have a car, discounts may be available if you insure it with the same insurance company year on year. Don’t forget to ask questions about discounts. Speaking for ourselves, we try to customize a product for you that takes into consideration the essential cover you need, your risk appetite, and the right price.

It’s true that many home-owners don’t put much thought into their insurance. Often, home insurance is purchased and filed away. Until something goes wrong that is. But if you wait for a disaster to happen before you analyze your home insurance policy, you may receive a nasty surprise in return for your premium payments. Carefully understand and analyze every detail of your home insurance policy. That’s how you can rest assured that someone will have your back when the going gets tough.