It is a well-known fact that most people in the world learn from their mistakes but some of those mistakes could prove to be very expensive. When something goes wrong, human tendency is to be more careful the next time. But if something very terrible were to happen to your house, wouldn’t you want to take all the necessary precautions the first time itself? Bet you would! So, here’s a quick list of tips for you to go through to help you buy a home insurance policy that’s just right for you.
Get sufficient coverage
Basically, a home insurance policy gives financial reimbursement for the house structure and its contents in an event of damage or theft to the owner or renter of the house. When opting for a house insurance policy, you must check whether it provides sufficient coverage for the following:
- Structure of your house
- Your treasured belongings and possessions
- Liability coverage for others who may endure injury on your property
- In case you have to move to a temporary accommodation while your house is being repaired, the Additional Living Expenses (ALE) incurred therein should also be covered
You must ensure that your house insurance policy is capable enough to rebuild your house in an event of loss of property.
Right estimation is the key
Take ample time to accurately assess the value of your property and belongings. If need be, do a detailed inventory of all the prized possessions in your home and keep a record of it safe outside your house. So, in the event of damage, you have details of all your personal belongings that need to be replaced. Also, the sum insured by your policy needs to be higher than the value of your property. At the same time, do not over-value your property as this could cause complications later on.
Know what your policy says
However boring it may sound to read policy documents, it is indeed really important. Read the fine print so that you know the inclusions and exclusions. Every policy differs from another in verbiage and hence you must go though it carefully to be sure that all your requirements are being covered in it. If you do not want any last minute surprises, especially at the time of claims, you need to be very particular about what your insurance policy covers and if that suits all your needs.
Keep your policy up-to-date
After having purchased a home insurance policy, it is important that the facts about your house mentioned in it are updated. For example, if you purchase some really valuable antiques or get your house renovated, it needs to reflect in your policy so that the valuation of your house can be done accurately.