Five Mistakes People Make When Buying Home Insurance
Five Mistakes People Make When Buying Home Insurance
There's plenty to consider when you're buying home insurance. For instance, do you need contents cover, if so how much? Therefore, there are an equal amount of potential issues that lie in wait for unsuspecting homeowners. Here we'll take a look at five of the most common errors and what you can do to avoid them.
Not buying contents insurance
This is a contentious area for many home buyers, particularly those who don't have a lot of money left over to cover bills such as insurance. Contents insurance isn't a legal requirement, unlike buildings cover, and therefore some can easily see it as an optional extra. This can be very dangerous indeed.
Imagine a scenario in which a large number of your possessions are stolen or damaged by fire. The likelihood is that you'll be out of pocket to the tune of hundreds, if not thousands of pounds. This can be financially crippling, particularly if you've lost essentials such as carpets or kitchen appliances. This is exactly the kind of situation that contents insurance was created for.
Even having the most basic cover can help you to avoid a double disaster. You can get back on track quickly and avoid the heartache of losing treasured possessions and receiving no compensation. Buying it with your buildings cover will often also result in a discount, so you can get more in your policy without having to shell out too much.
Paying too much
Home insurance comes at a cost, often this is quite a significant cost. But there are ways in which you can keep this to the absolute minimum. Just doing a little shopping around and comparing the quotes from a variety of insurers will give you a better idea of the wider competition and get yourself a better deal.
Do it online, over the phone or even in person if you prefer, just make sure that you don't get sold an overpriced policy needlessly.
Inadvertently provide false information
This is easily done and may be entirely accidental; but failing to provide accurate details can have a huge impact on your insurance policy and its validity in the case of a claim. This is particularly pertinent when considering the contents cover for a home.
Whilst buildings cover is easily determined by past records and the insurer's own data on the area, contents is dependent on the information you provide. Anything that isn't properly declared could lead to major issues. So check, and then check again before you submit your application for a quote. You don't want to be paying for cover that will end up failing you in the event of a claim.
Renew without comparing prices or updating information
It's easily done. You receive your renewal notice for your home insurance and you simply sign it off for another year. But what if you could get it cheaper elsewhere or you haven't updated your details properly. Suddenly you could be paying more and have a policy that may not even cover everything that you want it to.
This is easily avoided though. When you get your revised quote, just use this as a basis for comparison and see what's available out there. Also just take the time to double check details and include anything that may have changed during the course of the past 12 months.
Being too hasty
Rushing in and buying insurance from the first company that gives you a quote may leave you in a position where you're paying too much or receiving poor service. Have a good scout around and conduct a bit of research to make sure you're entirely comfortable with what you're being offered and then make an educated decision at the end. Is Home Insurance Changing? Elements of the Best House Insurance Do You Have Enough Homeowner's Insurance Coverage? Is Home Insurance Calculated by Gender? What has your age with your home insurance Facts you need to consider for Affordable Home Insurance Breaking the Barriers to Affordable Home Insurance Home Insurance Security The Truth About Homeowners Insurance Cover Being Aware of What is and Isn't Covered in Your Homeowner's Insurance Policy Becoming Savvy About Homeowners Insurance In New York Home Insurance Covers Tangible Assets for St. Petersburg Homeowners Houses for sale real estate broker must be experienced and should have good knowledge