What differentiates a basic home insurance policy from the best home insurance policy? Well, you might think that it is bound to be the price but that is not correct. The best home insurance is a comprehensive product that needs careful consideration. It also needs a lot of research since every case is unique. What others might consider unnecessary, might prove to be very important to you when the time comes.
Whether you want to renew your home insurance policy or simply want to switch insurers, you need to focus on some key points before buying a policy. Let’s take a look at some of those points in the following sections:
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Building and repair costs should be covered by the home insurance policy
Being a homeowner is not an easy feat. The first need for a homeowner is to have an insurance policy for their building. With that being said, it is not at all recommended to jump at the first home insurance policy you see on your screen. You need to make careful calculations about the approximate cost you’d need to bear in case something terrible happens to your property and you need to rebuild it.
We said careful calculation since people often overestimate the cost that results in them going for an expensive policy that they don’t need. Keep this in mind that the rebuilding cost is the cost of the building materials, viz. mortar, bricks, and the likes. It does not include the cost of the land and that of the property. After making the calculations, go for an insurance policy that provides cover repair and rebuilding costs.
Go for a home insurance policy that provides extended cover against accidental damage
Most home insurance policies offer basic cover to your property against damages sustained due to an accident – for instance, someone ramming their vehicle on the front door of your home.
The best way to make your property secure is to go for a policy that provides cover to your property against damages sustained during cleaning, repairing or maintenance works. In case your contractor damages your prized fountain, be sure that your insurer and their policy covers the repair costs. This is often known as extended coverage and to be frank, costs a bit more but in the end, if it covers your property; it is all worth it in the end, isn’t it!?
Read the fine print and make sure that the insurer provides cover for valuable items
If your property houses valuable items like luxury watches, professional camera, film equipment, studio equipment or sports equipment, make sure that you are going for a policy that offers extended cover to high-value possessions along with your home. The best possible approach is to sit down with the insurance agent, make a list of these valuable items you own and give an approximate value of each.
Go for a policy that offers legal cover to their clients
Another added benefit that insurers recently started providing to their clients is offering legal cover if any item in your property has caused injury to another person. It is best to opt for this benefit. Without it, you will be liable to pay the injured person compensation and lawsuit costs if they plan on pressing charges.
Insurers these days offer added benefits such as making arrangements for you and your family to stay in a different location in case your home has become potentially dangerous or unfit for residence until it is being repaired/rebuilt. Be sure to read the fine print of the policy document and ask the agent any query that you might have for best results.