Top Five Insurance Pitfalls In House Insurance
Buying house insurance should be a simple procedure right
? The fact is that if a company is selling you an insurance product, they should be legal, above board and willing to pay out when or if you have the need to make a claim against the insurance.Those things are all true and yet protection policy purchases can have a few pitfalls that you may want to consider before you buy. Every home owner's policy is going to be different. In the same fashion, every home owners company is going to be different too. Buying your policy can have some issues that you want to iron out prior to plunking down the money for your policy and finding out that it's not what you need.
Many home owners will buy house insurance based on the first company that they find with a reasonable price. This holds true whether or not the company is large or small.
Pay attention to details and ask questions in advance. Some of the major problems that home owners run into when getting house cover quotes could be avoided by doing some advance checking.
The top five things that get people in trouble when they purchase home owners cover are:
1. Neglecting to check out the companies financials- getting the details on how the company that you select to insure you is doing financially is important, but is often neglected. If you choose a small company then check them out thoroughly and make sure they can afford to pay claims. Also make sure that your company has no major complaints or records of non payment of their claims.
2. Neglecting to ask questions about their cover -many home owners simply assume that the contents of their home will be covered. In many cases they are not covered. Ask about the policy covers when you get house insurance quotes, what will be paid for and what will be completely excluded. In some cases, your home may not be covered if it is a historic home.
3. Confusing the price they paid for their house with the cost it would take to rebuild it. Many people simply insure for the price that they paid. The reality is that in most cases it will cost you far more than you paid to rebuild the same house that you have. Always insure for at least twenty thousand more than you paid for your house. It will assure that you have what it takes to rebuild it in the event of a disaster.
4. Changing carriers frequently is a good idea. You may get a discount in some cases, when you get quotes, but in other cases, if you do not keep the same cover and change them multiple times, you will lose credibility with the companies and may actually be charged more for the price of your house insurance.
5. Buying government secured cover. While government insurance is in fact more secure it will generally cost you about 1.5 times as much as the normal price that you will pay from a private carrier. Buying state or government cover is usually not your best deal. Get house insurance quotes from private companies.
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